Crocs reports Q3 revenue and profit decline

US footwear group Crocs Inc. reported a significant decline in revenue in the third quarter of the 2025 financial year. Profit also fell significantly short of the previous year's level. However, the latest results, which the company presented on Thursday, exceeded analysts' expectations.

In the months from July to September, group revenue amounted to 996.3 million dollars. This represented a decrease of 6.2 percent compared to the same quarter last year. Adjusted for currency fluctuations, revenue shrank by 6.8 percent. An increase of 1.6 percent (currency-adjusted +0.9 percent) in its own retail business was not enough to offset a decline of 14.7 percent (currency-adjusted -15.1 percent) in the wholesale business.

Both group brands suffer revenue declines

Revenue for the core Crocs brand decreased by 2.5 percent (currency-adjusted -3.2 percent) to 836.2 million dollars. Declines in North America could not be fully offset by growth in the international business.

For the Heydude label, revenue shrank by 21.6 percent (currency-adjusted -21.7 percent) to 160.1 million dollars. This was mainly due to a significant decline in the wholesale business, where revenue fell by 38.6 percent (currency-adjusted -38.7 percent) to 69 million dollars.

In addition to the decline in revenue, a lower gross margin and higher selling, general and administrative expenses caused operating profit to fall by 23.0 percent to 207.7 million dollars. Net profit amounted to 145.8 million dollars. This was 27.0 percent below the level of the same quarter last year.

CEO Rees announces additional cost-saving measures

Management currently expects the downward trend to continue in the fourth quarter. It forecast a revenue decline of around eight percent compared to the same period last year. The Crocs brand is expected to see a decline of around 3 percent, while Heydude is expected to see losses in the “mid-20 percent range”.

Meanwhile, CEO Andrew Rees announced further cost-saving measures. In addition to the 50 million dollars in cost savings to be realised in the current year, the company has identified additional savings potential of 100 million dollars, he explained in a statement.

This article was translated to English using an AI tool.

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