Crocs reported net income of $137.6 million in the first quarter, down 14.1% year-over-year, or $2.71 per share ($2.99 adjusted), on revenues of $921.5 million, exceeding analyst expectations for both earnings and sales.

Crocs brand revenue rose 0.8% to $767 million, driven by a 12.9% increase in direct-to-consumer sales to $322 million offset by a 6.5% wholesale decline to $446 million. North America slipped 6.1% to $346 million while international grew 7.2% to $421 million. Hey Dude revenue fell 12.3% to $154 million, with DTC up 8.6% to $71 million and wholesale down 24.7% to $83 million.

For fiscal 2026, Crocs forecasts revenue down 1% to up 1%, with the Crocs brand flat to up 2% and Hey Dude down 5% to 7%, improving prior targets. Second-quarter revenue is expected to decline slightly year-over-year, with Crocs brand growth of 1%–3% and Hey Dude sales falling 12%–14%.

Shares declined over 2% pre-market on the softer Q2 guidance as investors focused on the outlook. Management emphasized disciplined execution, strong direct-to-consumer growth and rapid product innovation as drivers of early-year performance.