CROX

Crocs stock has delivered a 41.0% gain over the past year, yet valuation checks suggest the shares may still trade below what the company’s cash flows imply. The Discounted Cash Flow (DCF) intrinsic value estimate and earnings multiples both point to an undervalued profile relative to the current market price. Over the past 12 months, Crocs has returned 41.0%, which places recent momentum alongside a valuation picture that still screens as cheap on several measures. Investor focus now centers on how Crocs converts brand demand into durable cash flow, while the key risk is that any slowdown in growth expectations or margin pressure could narrow the current valuation gap. The broader checks lean cheap for Crocs, with a high value score of 5 and an intrinsic estimate that sits about 41.8% above the market price. The issue now is whether Crocs’ current share price already reflects these stronger cash flow expectations or if there is still a meaningful discount that investors are willing to pay for. Compare Crocs with other potentially undervalued opportunities by scanning the hand picked 46 high quality undervalued stocks that also show strong cash flows and solid fundamentals. The Discounted Cash Flow (DCF) model here focuses on the cash that Crocs can generate for shareholders over time. Crocs produced latest twelve month free cash flow of about $688.7 million, and the DCF framework assumes this cash flow profile continues with broadly growing projections rather than sharp swings. On that basis, the 2 Stage Free Cash Flow to Equity model points to an estimated intrinsic value of about $209 per share. This compares with a current market price that implies a discount of roughly 41.8%. This represents a wide gap for a stock with this level of free cash flow. The recent share price reaction to third quarter guidance, where the outlook fell short of what some investors expected, helps explain why the market price remains below the DCF estimate despite what the model views as healthy cash generation. Overall, the Discounted Cash Flow work suggests Crocs stock still screens as undervalued relative to the cash it is forecast to produce. Our Discounted Cash Flow (DCF) analysis suggests Crocs is undervalued by 41.8%. Track this in your watchlist or portfolio, or discover 46 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Crocs. The P/E ratio is a useful way to see what investors are currently paying for each dollar of Crocs earnings. Crocs trades on a P/E of 9.8x, which is well below the Luxury industry average of 16.3x and also below a peer average of about 17.5x. On simple comparisons, the stock is priced at a discount to other listed luxury and footwear companies. A more tailored fair P/E for Crocs is estimated at 19.1x, which reflects the company’s margins, growth profile, market position and risk factors. Against that yardstick, the current 9.8x implies a wide gap and indicates the market is applying a cautious earnings multiple even after recent guidance around upcoming quarters. On the P/E measure, Crocs stock appears undervalued compared with both its own fair multiple and the typical level seen across the industry. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where Crocs' valuation puzzle leaves off by spelling out which assumptions on growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price. These Narratives live on the Community page. Each one ties a specific storyline about Crocs' potential catalysts and risks to an implied fair value so you can track which scenario is unfolding over time. Crocs inspires sharply different community views, with one group focused on global growth and cash returns while the other worries about fashion, cost and regulatory risks. Bull case: 12% undervalued Read the full Bull Case to see why Crocs could be undervalued Bear case: 28% overvalued Read the full Bear Case to see why Crocs could be overvalued Do you think there's more to the story for Crocs? Head over to our Community to see what others are saying! Crocs screens as undervalued on both the Discounted Cash Flow (DCF) intrinsic value estimate and the earnings multiple view, which points to a consistent message across methods rather than a single outlier signal. The key question is whether the cash flow and margin profile that underpin that intrinsic value can hold up as the brand matures and competition stays intense. For you as an investor, the crux is whether the current discount reflects an opportunity for patient capital or whether the market is correctly pricing the risk that demand or profitability fall short of expectations. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CROX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

VF Corporation VFC raised its fiscal 2027 constant-currency revenue outlook to growth of 2% or better, up from its previous 1-2% range, after first-quarter performance exceeded management’s revenue and operating-income expectations. The upgrade signals improving visibility across much of the portfolio, but investors still need to assess whether strength in Outdoor and smaller brands can compensate for a Vans recovery that remains incomplete. Crocs, Inc. CROX offers a useful casual-footwear comparison. Its second-quarter 2026 revenues reached a record $1.18 billion, while the Crocs Brand topped $1 billion in quarterly revenues even as HEYDUDE revenues declined 5.7%.Under Armour, Inc. UAA is another consumer-brand turnaround facing uneven demand. Its first-quarter fiscal 2027 revenues declined 3%, footwear revenues fell 8% and the company lowered its full-year revenue outlook to a mid-single-digit decline while maintaining its profitability outlook. First-quarter revenues, excluding Dickies, were flat in constant currency, better than management’s expectation for a low-single-digit decline. Adjusted operating loss excluding Dickies came to $95 million compared withs guidance for roughly $100 million, providing another reason for management to become more constructive on full-year revenue. Image Source: Zacks Investment Research Outdoor segment revenues increased 5% year over year, with The North Face up 4% in constant currency and Timberland up 3%. Outdoor also showed channel breadth, as reported DTC revenue increased 9% and wholesale rose 3%, reinforcing the segment’s role as VFC’s principal growth engine while Vans remains under pressure. Vans revenue fell 9% in constant currency in the first quarter, and management expects a roughly similar decline in the second quarter. The full-year outlook assumes a meaningful improvement thereafter, with Vans expected to decline by a mid-single-digit rate for fiscal 2027 and combined third and fourth-quarter revenues expected to fall 2% or better as wholesale assortments refresh. The guidance increase is not resting solely on The North Face and Timberland. Altra grew at a double-digit rate, Smartwool also posted double-digit growth, and JanSport and Kipling contributed to improved packs performance, while DTC revenues excluding Dickies increased 5% in constant currency. That broader participation reduces VFC’s dependence on a rapid Vans rebound to generate companywide growth. VFC maintained its fiscal 2027 adjusted operating-margin target of about 8% despite continued investment in marketing and DTC initiatives. Management also continues to expect free cash flow to be flat to higher than fiscal 2026’s $405 million and year-end leverage of 2.6-2.9 times, making profitability and balance-sheet execution important confirmations of the stronger revenue outlook. V.F. Corporation price-consensus-eps-surprise-chart | V.F. Corporation Quote VFC carries a Zacks Rank #3 (Hold), suggesting the improved outlook has not yet translated into a clearly favorable near-term earnings signal. Its Value Score of A and VGM Score of B offer support, but the Growth Score of C and Momentum Score of F underscore why investors may still want evidence that Vans’ second-half improvement and VFC’s margin targets are materializing. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report V.F. Corporation (VFC) : Free Stock Analysis Report Crocs, Inc. (CROX) : Free Stock Analysis Report Under Armour, Inc. (UAA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Who’s reading the tea leaves now? Growth, growth and more growth is the overwhelming mantra. It can be an issue for firms where the investors are focused on a short-term time horizon. And the volatility can be further impacted by those who short the stock and then need to cover their bets. More from WWD July Retail Sales Signal Consumer Caution After Its Popular Repetto Collab, Birkenstock Is Going Bigger With Ballet Fashion How Wolverine CEO Chris Hufnagel Plans to Keep the Good Times Rolling at Merrell and Saucony One might think investor reaction would be focused on a shoe firm’s earnings report and whether it failed, met or exceeded Wall Street’s expectations for that quarter. But these days, stock swings impacting companies — specifically on the day they report earnings results — seem to be more connected to company outlooks. One notable example is Crocs Inc. The company reported solid second-quarter results on July 30. Net income for the three months swung to the black to $204.9 million, against a year-ago net loss of $492.3 million. Revenues were up 2.6 percent to $1.18 billion from $1.15 billion. Shares of Crocs closed at $133.52 the day before its earnings release. The shares opened the trading day at $124.80 after it posted earnings before the market opened, and went on to close the day’s session at $123.66, although it dropped as low as $113.00 in intraday trading on July 30. Investors weren’t happy when the company issued third-quarter guidance that was below market expectations. Crocs guided adjusted diluted earnings per share (EPS) in the range of $3.20 to $3.30 a share, while Wall Street was expecting EPS between $3.41 and $3.84. And the stock sell-off occurred even though Crocs also raised its yearly guidance. When Adidas said on July 30 that it posted 14 percent sales growth in the second quarter, including a windfall from recent World Cup sales, the German sportswear brand also saw its shares post their biggest one-day drop — the shares slid 11.5 percent — in more than six years. Sales between April and June brought in 6.74 billion euros, beating market expectations that were set at 6.63 billion euros. At issue might have been higher-than-expected marketing expenditures that rose by 212 million euros for World Cup promotions. That’s because those expenditures led to lower-than-expected operating profit, which caught investors’ attention because although it rose 5.1 percent to 574 million euros, that amount was still 49 million euros below market expectations. And while Adidas CEO Bjørn Gulden explained that the marketing spend would go back to normal levels over the next two quarters, that spike already caused the brand to adjust full-year guidance. Growth estimates are between 9 percent and 10 percent for 2026, with Gulden noting that growth in the back half would be around 6 percent. The firm also likely upset investors when it kept prior guidance on operating profit that’s expected to rise to 230 million euros this year. Some were expecting that profit to rise more in lockstep with sales. On Tuesday, shares of sneaker brand On Holding AG fell more than 20 percent after the Swiss firm reported net sales of $1.05 billion that was short of Wall Street’s $1.08 billion estimate. The company’s founder and co-CEO David Allemann said the results prove that a “brand can achieve global scale without compromising its premium positioning.” And while the exec focused on how direct-to-consumer sales jumped 26 percent in the second quarter, investors were focused on wholesale sales, which rose just 4.8 percent. That was far below expectations of some analysts who had projected an uptick by a double-digit percentage. Even worse was what M Science analyst Drake MacFarlane described as a “disconnect” between what the company said — a temporary blip in the wholesale channel — when company guided down estimates for the full year. Any kind of intel that could cause an investor to speculate about future sales, even a tiny blip or wobble noted by someone on a company’s management team, may set off some stock selling. When Boot Barn Inc. on July 29 reported first-quarter results, the retailer not only raised its yearly guidance, it also projected second-quarter sales that reflected growth of 13 percent to 15 percent year-over-year. Net income rose 31.3 percent on a sales gain of 17.7 percent. One would think shares of the company should have gone up. But the stock price opened the trading session on July 29 at $156.01, and closed at $150.89. The drop was likely due to the fact that chief executive officer John Hazen noted that July sales — the start of the third quarter — “moderated” and that it had “more challenging” year-over-year comparisons. That likely did not sit well with some investors, even though Hazen explained the seasonality of the business. And even just reiterating prior guidance may not be good enough for some investors. Deckers Outdoor Corp., the parent of the Ugg and Hoka brands, on July 23 reported first-quarter earnings that saw net income slip slightly to $129.97 million, on a net sales gain of 5.7 percent. (EPS beat Wall Street estimates.) For fiscal 2027 guidance, Deckers kept its prior estimates for net sales in the range of $5.86 billion to $5.91 billion. And the company did up its expectations for diluted EPS for the year, raising it to between $7.35 to $7.50. Deckers’ shares on July 23 closed at $96.23, and the firm posted earnings results that day after the market closed. The morning of July 24 saw Deckers’ shares open lower at $94.01. The stock slipped even further, before regaining some of its losses to close at $96.04. Best of WWD Zendaya's Best Christian Louboutin 'So Kate' Heels Moments All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Sign up for FN's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.

Crocs, Inc. recently reported past second‑quarter 2026 results showing sales of US$1,179.47 million and net income of US$204.89 million, alongside upgraded full‑year guidance and an expanded share repurchase program that now totals US$5.21 billion in authorization. The combination of a swing from a very large prior‑year loss to profit, plus continued buybacks, highlights management’s focus on earnings quality and capital returns. We will now examine how Crocs’ stronger profitability and expanded share repurchase authorization affect the existing investment narrative for the company. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 28 best rare earth metal stocks of the very few that mine this essential strategic resource. To own Crocs today, you need to believe the brand can turn solid profitability into durable value while managing exposure to fickle fashion trends and North American demand softness. The latest return to profit and modestly higher full year guidance support the near term earnings story, but they do not remove the key risk that clogs or HEYDUDE lose relevance if consumer tastes keep shifting. The most relevant update is Crocs’ decision to lift its share repurchase authorization to US$5,212.30 million. Combined with Q2 2026 buybacks of 2.3 million shares for US$251 million, this meaningfully reduces the share count, which can amplify per share earnings outcomes and make the impact of any future swings in revenue, margins or fashion risk more visible in reported EPS. Yet against this stronger profit picture, investors should be aware that if fashion cyclicality accelerates and Crocs’ clog heavy mix falls out of favor... Read the full narrative on Crocs (it's free!) Crocs’ narrative projects $4.2 billion revenue and $1.0 billion earnings by 2029. Uncover how Crocs' forecasts yield a $126.00 fair value, a 8% downside to its current price. Some of the lowest ranked analysts were already bracing for flat revenue near US$4.1 billion and only modest earnings growth to about US$611 million, so if you are weighing this cautious outlook against Crocs’ latest profit rebound and heavy buybacks, it is worth remembering that reasonable people can look at the same numbers and reach very different conclusions about what comes next. Explore 14 other fair value estimates on Crocs - why the stock might be worth 41% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Crocs research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Crocs research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Crocs' overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: AI is about to change healthcare. These 43 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Find 52 companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CROX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, July 30, 2026 at 8:30 a.m. ET Investor Relations - Abigail Ritter Chief Executive Officer - Andrew Rees Executive Vice President and Chief Financial Officer - Patraic Reagan Operator: Good day, and welcome to the Crocs Second Quarter 2026 Earnings Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Abby Ritter, Investor Relations. Please go ahead. Abigail Ritter: Good morning, and thank you for joining us to discuss Crocs Inc.'s Second Quarter 2026 results. With me today are Andrew Rees, Chief Executive Officer; and Patrick Reagan, Executive Vice President and Chief Financial Officer. Following their prepared remarks, we will open the call for your questions, which we ask that you limit to one per caller. Before we begin, I would like to remind you that some of the information provided on this call is forward-looking and accordingly is subject to the safe harbor provisions of the federal securities laws. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to differ materially. Please refer to our most recent annual report on Form 10-K, quarterly report on Form 10-Q and other reports filed with the SEC for more information on these risks and uncertainties. Certain financial metrics that we refer to as adjusted or non-GAAP are non-GAAP measures. A reconciliation of these amounts to their GAAP counterparts is contained in the press release we issued earlier this morning. All revenue growth rates will be cited on a constant currency basis unless otherwise stated. At this time, I'll turn the call over to Andrew Rees, Crocs, Inc.'s Chief Executive Officer. Andrew Rees: Thank you, Abby, and good morning, everyone. Thank you for joining us today. We delivered a stronger-than-expected second quarter, driven by broad consumer demand for both brands and consistent execution of our brand strategies. This fueled our powerful value creation engine, generating strong free cash flow, which returned to shareholders in the form of debt paydown and meaningful share repurchases. While Patrick will discuss our quarterly performance in more detail later, I would like to start by sharing several financial highlights and reviewing our performance by brand. For the second quarter of 2026, we delivered record enterprise revenues of $1.2 billion, up 2% to prior year, including Crocs brand up 4% and HEYDUDE down 6%. This quarter marked an important inflection for both brands, including a major milestone as the Crocs brand exceeded $1 billion in quarterly revenue for the first time ever. Another quarter of strong direct-to-consumer growth for both brands. Crocs brand DTC up 12%, including reduced promotional activity and HEYDUDE DTC up 7% despite lower performance marketing spend. Crocs Brand International revenue growth was 7% and North America returning to slight growth, a key milestone for the Crocs brand. Meaningful return of cash to shareholders with approximately 2.3 million shares repurchased for $251 million and debt paydown of $31 million. Furthermore, earlier this week, we received Board approval for an additional $1.5 billion share repurchase authorization, which Patrick will speak about later today. Now to performance by brand, starting with Crocs. The second quarter continued to build on our strong start to the year as consumers responded positively to product newness and marketing activations across channels and geographies. This is evidenced through the progress we have made against our 5 strategic pillars. First, we are driving brand relevance globally as the clog market share leader. During the quarter, we saw strength within our sport and fashion clog franchises, Crocband, Echo and Crafted. These franchises enable diversification of our overall clog portfolio, allow better segmentation and drive category relevance outside of our classic franchise. Starting with Crocband, demand has been broad-based across colors and iterations, including our latest introduction, the Crocband Runner. This focused introduction, which features our take on a retro sneaker trend, has been a strong performer amidst an exciting time for sports globally. Our Echo franchise continued to outperform globally, led by the Echo RO and Mary Jane silhouettes, and we are building on this momentum with the recent launch of Echo 2.0 earlier this month. The Crafted franchise continues to be led by our Canvas and embroidery uppers. And as we head into fall, we're further differentiating our assortment with a more distinct cold weather offering. As for our classic franchise within North American wholesale, we are on plan with our strategy to tighten inventory and channel and further segment our business across key partners. These actions, along with the green shoots we're seeing in our domestic DTC business, give us confidence in the stabilization and future growth of our icon. Second, we're scaling our product pillars outside of clogs through new category expansion. Starting with sandals. This category represents our largest near-term diversification opportunity, and we continue to take material market share. Within our 3 core style franchises, the Miami, Getaway and Brooklyn, we're building on the success of prior seasons through new introductions and innovation. One standout example of this success is within the Miami. New introductions such as the platform and round toe, as well as new materializations like the Miami Jelly, are driving heightened demand from consumers. Digital search trends further validate that this franchise is becoming increasingly well known to new consumers. As we spoke about on our first quarter call early this year, we launched a Saturday Sandal, a personalizable 2-strap silhouette. The initial launch drove exceptional response from our consumers and retailers globally, led by the metallic buckle iteration. As we look forward, we expect this franchise to continue to build meaningfully. More broadly, the momentum we have seen in our sandal category has strengthened the trajectory of our North America business, contributing to the return to growth we reported today. We expect this category to become an even more meaningful growth driver of our global business in 2027 and beyond. Outside of sandals, we are driving strong consumer engagement within our lifestyle category, led by the Classic Ballet Flat, which continues to see notable sellouts globally, particularly in Asia. Within recovery, we leveraged New York Giants players, Jaxson Dart and Cam Skattebo to launch 2 new silhouettes within our Mellow franchise, a clog and a closed-heel offering, which features an updated look and comfort proposition. The early demand we're seeing has been encouraging and reinforces the confidence we have in our overall diversification strategy. Turning to personalization. As a category leader in this space, we aim to push the definition of what personalization can be beyond traditional Jibbitz Charms. We have begun testing several innovations in the category, including sandal charms, which allow consumers to personalize franchises that don't support traditional Jibbitz Charms. We launched the program on a limited basis through our own dot-com and select stores, where we saw an encouraging consumer response. The ability to personalize a growing portion of our product offering remains a powerful driver of consumer engagement and a key competitive advantage for our brand. In addition, we're intentionally expanding into categories like bags and accessories, both of which saw meaningful growth during the quarter. Third, we are fueling consumer engagement through disruptive social and digital marketing. During April, we launched the Glad you Noticed campaign, leveraging creative partnerships and a fully integrated media strategy to spotlight our sandal business. The campaign was a key driver of the strong momentum we saw in the category during the quarter and reinforces the power of our socially led storytelling to drive growth. As we continue to integrate our brand into entertainment and media, we leverage the success of our first micro drama on ReelShorts, "Charmed to Meet You," to launch "Charmed to Meet You 2" during this quarter. Together, these micro dramas have garnered nearly 20 million views, reaching both new and existing consumers. Looking ahead, we will continue to leverage one of Crocs' core strengths, our ability to identify and capitalize on emerging platforms early to connect with consumers in new and disruptive ways. We also launched several iconic collaborations during the quarter, including our partnerships with 2 globally recognized brands, BAPE and F1 Red Bull Racing. Starting with BAPE, this collaboration leveraged the Echo RO and sold out within minutes globally, underscoring Crocs' versatility and ability to appeal to streetwear culture. To amplify the launch, we took over Shibuya Crossing in Tokyo, bringing our brand to one of the world's most visible consumer stages. Turning to F1 Red Bull Racing. This collaboration was supported by global strategic partnerships, which fueled meaningful social media engagement and in turn, drove strong new customer acquisition to the brand. To round out the quarter, we were front and center at Paris Fashion Week, showcasing new innovation with our EXP line and building momentum ahead of our Echo 2.0 launch through a partnership with Brain Dead, an influential brand within fashion and culture. Fourth, we are creating compelling consumer experiences across channels. Starting with social commerce, we continue to build our leadership position in this channel, including a successful execution of TikTok Shop's first-ever global Super Brand Day in July. The event exceeded our expectations and demonstrated the strength and scalability of Crocs social commerce model. As we continue to push the boundaries of digital commerce, we've also become the first brand to launch a shoppable series within TikTok Shop. The series titled "Deja Shoe," brought content and commerce together in a seamless digital-first experience. This coincided with the replenishment of our Ballet Flat and Saturday Sandal on the platform, amplifying demand for both franchises and creating a meaningful halo to our own dot-com. In addition, we began testing AI-enabled shopping experiences across platforms such as ChatGPT and Copilot during the quarter. While still early, we're seeing encouraging results, with consumers responding well to more personalized product discovery and converting at higher rates through these channels. We're excited about the opportunity to further expand our presence across these emerging platforms. As we look ahead, these channels are becoming increasingly important to how consumers discover and shop brands. We have developed a diverse network of partners, which allow us to pivot our focus to platforms where we can further our leadership position at the intersection of commerce, content and technology. Fifth and finally, we're continuing to gain market share internationally. In the second quarter, we saw broad-based strength across our Tier 1 markets, led by DTC. We saw double-digit growth in our high-priority markets, China, India and Japan, followed by key markets in Western Europe. Beginning with China, the second quarter was a record revenue quarter, including another successful mid-season festival. Importantly, we leveraged our read-and-react abilities to quickly bring China for China products to market, including unique iterations of our Ballet Flat. Turning to India. We leveraged celebrity and brand ambassador, Rashmika Mandanna, to celebrate the monsoon season, featuring our new Classic Buckle and Ballet Flat franchises. In Japan, performance continues to be broad-based across channels, supported by strong consumer affinity for personalization and successful launches of both new and licensed products. Western Europe, which includes the U.K., France and Germany, continues to be led by direct-to-consumer channels where newness within our Echo and Crocband franchises have driven outsized response from consumers. Lastly, during the quarter, we opened approximately 160 mono-brand stores and kiosks, including 34 owned and operated stores internationally. Now turning to HEYDUDE. The second quarter marked another significant milestone in our progress returning the brand to growth, anchored in a focus on our core consumer and building off the momentum we saw entering the year. Both our DTC and wholesale channels contributed to the brand's improving performance despite ongoing pullback in performance marketing spend and the thoughtful management of in-channel inventory. This progress is evidence that our 3-pillar strategic plan is working. First, we are laser-focused on our core consumer. During the quarter, we launched our first ever global summer campaign, Take A HEY-Cation. The campaign was grounded in the key attributes of our core consumer: comfort and relaxation. Our HEY2O, Stretch Sox and sandal products anchored the messaging and helped drive upside to our top line expectations in the quarter. Building on this, we arrived at Stagecoach for the fourth year in a row, this time with partner TikTok, which drove higher conversion to our own dot-com versus prior years. We then celebrated Father's Day to round out the quarter in our most disruptive way yet. We leveraged Home Depot to launch the ultimate dad shoe, the Stride S, designed by Steven Smith. Looking forward, we plan to build on this launch to introduce a broader range of sneakers and casual footwear. Turning to collaborations. During the quarter, we launched several relevant partnerships, beginning with Burlebo, an outdoor lifestyle brand. During the initial launch in April, this collab sold out in less than 24 hours on our own dot-com, and we're chasing demand for a second release in May. In addition, we released collaborations with SIMMS Fishing, Minecraft and Toy Story, all of which exceeded expectations. Before turning to product highlights, I would be remiss not to mention our newest partnership with the National Hacky Sack League. Amidst the national resurgence, HEYDUDE icons, the Wally and Wendy, were banned from tournaments due to the design of the shoe, which was deemed to provide players with an unfair advantage. Core to Crocs' DNA, we worked swiftly to capitalize on the virality of the moment and have now entered into a partnership as the official shoe of Hacky Sack for 2026. Second, we're building the core and thoughtfully adding more. We're amplifying our leadership within the slip-on category, led by our icons, the Wally and Wendy. Stretch Sox remains a driver of our core business, along with the increased momentum in our Stretched Jersey franchise. Patent iteration of these core silhouettes, such as those included in the Americana launch were consumer favorites ahead of America's 250th anniversary and demand outpaced inventory during the quarter. As we grow our business outside of our icons, we continue to see strength in sandals, particularly for her, led by the Maui Breeze and the Austin Slide. Also within sandals, we're testing HEY2O Flip, which appeals to him and has been on a positive trajectory. Beyond sandals, we're seeing notable consumer response to our work offering. Importantly, this consumer is new to the brand and purchases at a higher frequency. We have begun to take meaningful shelf space at key retailers in this category and look forward to scaling further as we move into the fall and winter seasons. Third, we're focused on stabilizing the North America marketplace. As I shared earlier, our second quarter results were ahead of expectations, and we're confident in our strategy to return to growth in the back half of this year. During the quarter, direct-to-consumer revenues increased 7%, led by strength in digital marketplaces. Within this, we saw outperformance from TikTok Shop, in part driven by our Super Brand Day, as well as the benefit from a record Amazon Prime Day, led by products, including the Karina. Wholesale was better than anticipated, down 17%, supported by higher at-once demand and thoughtful management of in-channel inventory. Against this progress, we are receiving positive feedback from our key partners in both new as well as core products as we head into the back half of the year and beyond. To conclude, we're focused on executing our near-term initiatives to drive diversified growth across both brands, direct-to-consumer and wholesale channels as well as domestic and international markets. We have clear and achievable strategies to grow our brands enabled by consumer focus, innovative products and marketing and our global go-to-market capabilities. I will now turn the call over to Patraic. Patraic Reagan: Thank you, Andrew, and good morning, everyone. During the quarter, we again made meaningful progress against our strategic priorities for both brands. This reinforces the confidence we have in building sustainable long-term growth. The second quarter built on our strong start to the year, delivering better-than-expected results, driven by broad-based consumer demand and disciplined execution. At Crocs Inc., our teammates across the globe are playing to win every day. With the mindset of ambition, decisiveness and agility, we are moving with purpose to aggressively action our strategic priorities, and we are making progress. Now let's move to our results. For the second quarter, we delivered record enterprise revenue of $1.2 billion, up 2% to prior year and ahead of our expectations. Our results were led by strong direct-to-consumer growth for both brands as consumers continue to respond favorably to new product offerings. This was offset in part by anticipated wholesale declines as we continue our managed approach to optimize the channel and support long-term profitable growth. For the quarter, Crocs brand revenue of $1 billion was up 4%, the first time the brand has exceeded $1 billion in a quarter. This is not only an exciting milestone, but one that underscores our brand's continued resonance with consumers globally. Results were led by our international segment, up 7%, including double-digit growth in China, India and Japan. North America returned to growth, up slightly to prior year. Within North America, the direct-to-consumer channel was up 5% to prior year, led by marketplace outperformance and despite our continued year-over-year reduction in promotional activity. This growth was in part offset by the aforementioned wholesale decline. The HEYDUDE brand delivered revenue of $179 million, down 6% to prior year, exceeding our expectations and marking another meaningful step in our return to growth journey. Direct-to-consumer sales were up 7%, ahead of our plan, driven by robust digital marketplace performance and new store openings. Notably, this growth was achieved against a continued lower level of year-over-year performance marketing spend. The wholesale channel was down 17%, also ahead of plan, as we continue to thoughtfully manage our in-channel inventory levels. The HEYDUDE team has been executing the strategy with speed and rigor, giving us continued confidence in returning to growth in the back half of this year. Now moving to adjusted gross margins, enterprise adjusted gross margin of 60% was down 170 basis points to prior year, driven by 160 basis points of incremental tariff impact. Crocs brand adjusted gross margin was 63.1%, down 100 basis points to prior year, driven by tariffs and product mix, offset in part by the benefit of our cost savings initiatives and international price increases. HEYDUDE brand adjusted gross margin was 43.7%, down 650 basis points to prior year, driven by tariffs, channel and product mix, offset in part by benefits of our cost savings initiatives. Moving to expenses. Adjusted SG&A dollars were $412 million, up 3% to prior year as we recognized benefit from our cost savings initiatives, offset by choiceful direct-to-consumer channel investments aimed at connecting with our consumers and driving revenue. Adjusted operating margin of 25.1% was down 180 basis points to prior year. This excludes $10 million of specific costs related to the implementation of our cost-saving initiatives and a distributor take-back during the first quarter. Adjusted diluted earnings per share of $4.55 was up 8% to prior year and ahead of our guidance of $4.15 to $4.30 per share. And finally, our non-GAAP effective tax rate was 18%. Now turning to a discussion of our strong balance sheet and cash flow. We ended the quarter with just over $170 million of cash and cash equivalents and approximately $870 million of borrowing capacity on our revolver. Our inventory balance as of June 30 was $389 million, down 4% to prior year. Notably, this included the impact of higher tariffs. Inventory footwear units were down high single digits to prior year, reflecting our decisive actions to manage inventory flow into the marketplace. Enterprise inventory turns were above our goal of 4x on an annualized basis. The power of our business model drives exceptional free cash flow, which provides us with significant flexibility in how we allocate capital and generate shareholder value. During the quarter, we repurchased approximately 2.3 million shares for $251 million, another proof point of our commitment to returning capital to shareholders. Reflecting our confidence in the business and future cash flow generation, earlier this week, our Board approved an additional $1.5 billion share repurchase authorization, bringing our total available authorization to approximately $2 billion. This substantial increase underscores both our confidence in the business and our commitment to returning excess capital to shareholders. At the same time, we continue to strengthen our balance sheet. During the quarter, we paid down an additional $31 million of debt and ended the quarter with net leverage at the low end of our target range of 1 to 1.5x. Now moving to our full year 2026 outlook. We expect enterprise revenue growth for the full year to be 1% to 2% versus prior year, up from our previous guidance and assuming currency rates as of July 27. Moving on to revenue guidance by brand. For the Crocs brand, we now expect revenue to be up 2% to 3% versus our previous guidance range of flat to up 2%, led by international growth. We continue to expect North America to be down for the year with declines led by the wholesale channel. Now before turning to HEYDUDE guidance, I want to speak to a business model change that we will be implementing with one of our largest marketplace partners beginning in Q3. This will affect how we recognize Crocs brand North America revenue between our D2C and wholesale channels and will have the following impacts. One, we will recognize lower revenue in our D2C channel. Two, conversely, we will recognize higher revenue in our wholesale channel. Three, the net of these revenue shifts will be lower overall revenue. Four, this will be neutral from a units sold and market share perspective. And five, we will see an improvement to operating profit. We have fully contemplated the impact this will have to revenue and our latest top line expectations for the Crocs brand. Finally, and in line with our prior guidance, North America D2C is anticipated to be positive for the year excluding this change to revenue recognition. Turning to HEYDUDE. We now expect revenue to be down approximately 2% to 4%, another improvement from our previous guidance range of down 5% to 7%. This increase reflects our confidence in the brand returning to growth in the back half of the year. We are also raising our bottom line expectations for adjusted diluted earnings per share to now be in the range of $13.70 to $14, up from our previous guidance range of $13.20 to $13.75. Consistent with our previous guidance policy, this range does not assume any impact from future share repurchases. Moving on to margin guidance. We continue to expect adjusted gross margin for the year to be slightly up versus last year, including the impact of tariffs, offset in part by our cost-saving efforts, primarily in our supply chain. Adjusted SG&A dollars are implied roughly flat to prior year, in line with our prior guidance, including benefits from our previously announced cost savings programs, offset by investments into growth drivers for the enterprise. Taken together, we continue to expect adjusted operating margin to expand modestly from the 22.3% level we reported in fiscal year '25. This excludes approximately $25 million of nonrecurring costs. For tax, we continue to expect our underlying non-GAAP effective tax rate which approximates cash taxes paid to be 18% and the GAAP effective tax rate to be 23%. For the year, we continue to expect capital expenditures to be in the range of $70 million to $80 million. Regarding capital allocation, as I highlighted earlier, we are committed to, first, investing behind both of our brands to fuel long-term growth; and second, returning our significant free cash flow to shareholders through share repurchase. Now turning to our third quarter outlook. For the third quarter, we expect revenues to be approximately flat at currency rates as of July 27. Within this, Crocs brand revenues are expected to be up approximately 1%; HEYDUDE revenues are expected to be flat to down 3%. Adjusted operating margin is expected to be approximately 21.5%, which embeds adjusted gross margin up approximately 170 basis points to prior year. Adjusted diluted earnings per share is planned to be in the range of $3.20 to $3.30. Before closing, I want to provide a few shaping considerations implied in our third versus fourth quarter guide. For revenues, the strategic actions we made in the back half of last year for both brands were more weighted towards Q4. And for margins, the fourth quarter of 2025 had a larger tariff headwind of 300 basis points versus Q3 at 230 basis points. To close, we are pleased with our strong first half performance and the momentum we continue to see across the business. The results we delivered reflect the strength of our brands, broad-based consumer demand and disciplined execution by our teams around the world. As always, we remain focused on driving long-term profitable growth while generating and deploying our exceptional free cash flow through our best-in-class value creation engine. At this time, Andrew and I are happy to take your questions. Operator? Operator: [Operator Instructions] our first question comes from Jonathan Komp with Baird. Jonathan Komp: Patraic, I wanted to start regarding the business model shift that you mentioned, could you maybe further quantify any impacts you're expecting on D2C in total revenue, maybe both for the third quarter and then how should we think about that on an annualized basis? Patraic Reagan: Yes, Jonathan. Maybe what I'll do is I'll hit the mechanics of it as it relates to kind of revenue, revenue recognition, and then Andrew will kind of pick up and contextualize a little bit. So let me just kind of start off by saying that overall, what we aspire to do is kind of meet the consumer where they shop and take friction out of the shopping experience. So what we are talking about here today is a means to the end of that. But more specifically, as it relates to the financial side of it is it's really, as we described in the prepared remarks, it's really a revenue recognition in the topic. And so just to kind of reiterate, what you'll see is you'll see lower revenue recognized in our D2C channel as we make the evolution. We'll see higher revenue recognized from a wholesale perspective. The net of those will be lower overall, but there will be no impact to units sold in to market share, et cetera. And then we'll see a slight benefit from an operating profit perspective. And so I think the backdrop against this and how to think about it in terms of our guide and balance of the year, Q3, Q4, is you saw the confidence in terms of taking up the guide for Crocs, Inc. in both brands. And specifically for Crocs brand, despite the headwinds of this revenue recognition shift has for us in the short term, we still have great confidence in terms of where we are. And that gave us the confidence to take up the guide today. And I think Andrew has got a few more comments on just contextualizing this. Andrew Rees: Yes. Thank you, Patraic. Yes. As you know, Jonathan, for a long time, we've been focused on leaning into marketplaces. It is where the consumer goes first, both in this country and in many countries around the world, when they're searching for brands that they know and love. And we've seen us grow our business very meaningfully. I would say it's critical as we kind of think about each region and each country to make sure that we're doing business with those marketplaces in the way that is, I would say, most in sync with their business model. So I think this brings us a little bit more in sync with the key marketplace here in North America. But as I think about the consumer takeaway, we continue to gain share on these marketplaces. We continue to offer a very clear and coherent assortments to our consumers. And I would say it's very clear over the long run, this strategy has been really effective and it's working well for us. So we plan to continue it. Jonathan Komp: Okay. That's helpful. And maybe just as a follow-up, when we think about the new annual guidance for Crocs brand up 2% to 3% for revenue, which you raised, what should we take away in terms of the updated second half outlook for Crocs North America? If you could maybe clarify how the underlying revenue in that projection has changed. And I guess, bigger picture question, what's your confidence in being back to growth in North America? I think there's some concerns about retail generally for July, maybe some questions for the Crocs brand as you get past core sandal season. So just any other color there would be helpful. Andrew Rees: Yes. Great. So I would say to start with, we are supremely confident in the future growth trajectory of both of our brands, right? We just closed out a record quarter for our company in terms of revenue and raised our guidance and expectations for growth into the future. Returning to growth specifically in North America for both brands is also a very high priority. And from a Crocs perspective, we will not be returning to growth here in 2026, but we will meaningfully reduce the rate of decline that we saw in 2025. And that has been driven by, I think, very important and sustainable underpinnings. Number one is diversification. We've been diversifying our product offering, allowing both the consumer more choice and greater segmentation between our wholesale partners in a couple of meaningful ways. Number one, sandals, which you highlighted in your question, we've had a blockbuster sandal season for the Crocs brand here in North America and around the world and has driven meaningful revenue upside. We've also well on the trajectory of diversifying our clog portfolio, which was heavily oriented towards our core Classic. And I think in our prepared remarks, we highlighted all the other clogs we're bringing to market and seeing really great success, whether it be bringing back Crocband, introduction of Echo 2.0, introduction of a materialized clog to Crafted, and most recently, recovery clog and recovery shoe in the Mellow. In addition, I would say, emerging our other diversification opportunities for the Crocs brand, the Ballet Flat, which we include in our lifestyle segment, has been a really great success around the world, more in Asia than the U.S., but that's another opportunity to further diversify. So I think the things that we have done that are seeing very positive trajectory, we have complete confidence will yield the end result, which we wish, which is obviously return to growth in North America. I'd also highlight a couple of things. I know the market and the investment community is super focused on North American growth. But we have, over many years now, yielded very sustainable and strong international growth. Obviously, the number of consumers outside of North America in some of these big markets are very substantial indeed. We continue to see a long runway of strong international growth. And I would highlight, and I think we've highlighted this a couple of times, the flow-through of that growth to profitability from our international business is as strong as our North American business. So we see our ability to drive very meaningful growth in shareholder value from both growth internationally and growth here in North America. Operator: And the next question comes from Adrienne Yih with Barclays. Adrienne Yih-Tennant: I guess going back to the business model change, I'm still unclear. This is something that will actually take place starting in the third quarter, Crocs specific. So can you give us more color, Patraic, maybe the guide for Crocs in the third quarter is to slow quite a bit against easier compares, guided 1% versus the 3.7% constant currency. Should we assume that all of that or the vast majority of that is from this revenue recognition change? Or is there something about kind of what's happening in wholesale? So just some color there, maybe from a quantitative standpoint, obviously, this is just Crocs, confirming that. Number two, what percentage of your marketplace partners is this happening with? And then I guess really getting to what percent of sales does it actually impact, to help us with the color on that. And then on tariffs, just post 7/20 or 7/24, whichever date you want to take, we're now at kind of 12.5%, what's your assumption as you go up against those big tariff numbers? How much of the -- do you recapture from the 300 basis points in the fourth quarter? Patraic Reagan: Okay. Great. Adrienne, so let me kind of start with the marketplace shift and then will kind of progress through. So first of all, you're correct, beginning -- the marketplace shift begins in Q3. And so as Andrew had mentioned, we really view this as a shift going into Q3, Q4 that we want to communicate today because, ultimately, trying to be transparent in terms of where it's going. As it relates to kind of the guide for the year, let me again take you back to the fact that we raised guidance in the Crocs brand for the year. So the underlying strength of our business is significant and gives us the confidence to raise despite the revenue recognition shift that we're seeing. As it relates, kind of back to your question and just to be overwhelmingly clear, this relates to the Crocs brand and just North America within the Crocs brand. So that's kind of where we are. And from an evolution standpoint, overall, we feel good about where this is going. What I'd say in terms of percentage of marketplace shift, we're not going to get into the quantification exactly of those numbers. Obviously, it's large enough that we want to make you all aware of it, but it's not so large that it negatively impacts our confidence to guide up on the year. So trying to put the brackets on that hopefully is helping. From a number of partners standpoint, I mean, listen, we've got dozens of marketplace partners across the globe. Obviously, highlighting this means it's one of our more strategically significant partners. And so I think about it through that lens. But again, overarchingly, the shift that we're communicating in that today, fundamentally, it does not impact or affect anything as it relates to units into the marketplace, market share, health of our business, et cetera. It is simply a revenue recognition between channels. And then finally, before I'll turn it over to Andrew if he wants to add anything on here, from a tariff assumption perspective, where we are is we feel confident in terms of how we've guided. We've embedded the latest information that's come from the administration into our guide. We do expect that there are likely to be some additional twists and turns as we go through the balance of the year, and our guidance that we put forward today anticipates and reflects that. So with that, anything to add? Andrew Rees: No, I think you covered it. Thank you, Adrienne. I appreciate your questions. Operator: The next question comes from Rick Patel with Raymond James. Rakesh Patel: I was hoping you could double-click on Crocs North America wholesale. So nice to see the sequential progress there. Given the momentum and the accounting change, is it safe to assume that you expect declines to narrow further in the back half versus what you saw in Q3? And then just bigger picture, what do your wholesale accounts need to see before getting more constructive with demand? And if we exclude this revenue recognition change, would you see further progress based on the strength of newness? Patraic Reagan: Yes, Rick, what I can do is I'll hit the revenue recognition side of it and then turn it over to Andrew for some of the strategic actions and what we're seeing in the channel. So you kind of alluded to it. Given this is solely just a revenue recognition shift and it benefits from a rev rec standpoint, wholesale, you can expect the wholesale compares on a year-over-year basis to narrow and benefit from the shift, and conversely, D2C be impacted adversely in the shift. And so that's kind of the underlying mechanics to the shift, and Andrew can speak a little bit more to what we're seeing with wholesale and wholesale partners in the North American marketplace. Andrew Rees: Great. Thanks, Patraic. Yes. So I would say, from a North American wholesale perspective, I think we're really pleased with our business, and we're pleased with the trajectory that it's on. There's a couple of -- there's probably 3 critical things that are -- that we plan to happen and that we've executed well against. Number one is really maximize the growth of sandals, and we've been able to do that both in DTC, but also very strongly within wholesale. I would also say that some of our wholesale partners did under-anticipate or underplay some of the growth in our sandal business, and we've been chasing incremental inventory to supply at once across a range of styles that have performed really, really well, which also gives us really great confidence in an even better sandal season in 2027. The second important thing is segmentation. So diversification of the clog, from the classic clog to a broader range of clogs, I think, suited to some of the key channels within our wholesale landscape are allowing us to improve segmentation and give each of our partners some differential offering on which to engage their consumers. I think that is also on a very good trajectory and will also give us confidence in even stronger growth in 2027. And then I think the third thing I'd say, as we look at the consumer landscape that our wholesale partners are dealing with, I think they're planning the business relatively conservatively. I know you speak to many of them, and you'll be hearing that, as I would if I was in their shoes as well. But when they have new product that is working, they are very proactive in terms of chasing, right? And we have been working, I would say, tirelessly with a good number of them to chase key programs and key styles that have been selling through very effectively. So I think we're prudent relative to a consumer landscape that remains a little bit uncertain. But what it is very, very clear to us that when we deliver winning product, particularly new winning product, it gives us a great opportunity to continue to grow our business. Operator: And the next question comes from Tom Nikic with Needham. Tom Nikic: Wanted to ask about the recovery in HEYDUDE and, I guess, the expectation for growth in Q4. It seems like a pretty steep acceleration that's embedded. I mean based on my math, it's something like mid to high single-digit growth in Q4. And I'm sorry if this was touched upon already, but is that a function of like wholesale becoming a lot less negative? Is it an acceleration of DTC? Like what's the level of confidence in that acceleration? Just would love to get more color there. Andrew Rees: Yes. Yes, Tom. I would say, look, we're really happy about the trajectory that the HEYDUDE brand is on. I think we've seen kind of 4 sequential quarters of improved performance. And I think for the last 3 to 4 quarters, it's also exceeded our expectations. A lot of that has been driven by DTC growth where we are seeing really great growth on our marketplaces, on our dot-com and also -- and obviously, we're getting some growth because of the stores that we've opened and servicing our consumer. We've also been resetting the wholesale channel and managing carefully the quantity of inventory we have, the makeup of inventory that our wholesale partners have to ensure that their inventory turns accelerate. And I think we've reported a couple of quarters in a row now that has meaningfully changed and meaningfully improved. So the wholesale drag has been due to that reset. As we look into the back half of the year, we're confident in HEYDUDE returning to growth here in North America. And you are right, there is a steep increase in Q4, and that is relative to 2 things. One is confidence we have in growing in both channels. And two is the reset actions that we took last year that created a very weak compare. So if you -- I think we gave you all the breadcrumbs associated with how much that was in Q3 and Q4. So if you factor that in, I think you see that it's a -- it looks like, at the top line, a very steep return to growth. But if you factor that in, it's obviously much more sensible. Patraic Reagan: Yes. And Tom, just to add on, what I would say is, first of all, I just want to -- thank you for asking the question about HEYDUDE. We've been really pleased with what we've seen from the team and the actions and how they've been executing throughout the year. Fundamentally, from an internal standpoint, they've been meeting and exceeding all of the milestones that we set forth as we turned into the year. So as Andrew mentioned, very confident in both where we are, what we've done to get to this point and what the future looks like for HEYDUDE. Operator: And the next question comes from Brooke Roach with Goldman Sachs. Brooke Roach: I was hoping we could dig into the sandals business performance in a bit more detail. How much of the revenue upside in 2Q relative to your plan was driven by the sandals category? And as you look on a medium-term basis, how large do you think this business can become over the next 1 to 3 years as a percent of Crocs brand sales, particularly in North America? Andrew Rees: Brooke, yes, look, the sandals did well in Q2. We're very pleased with our sandal season. Our growth rates, I would say, are well ahead of the category. So we continue to gain share in sandals within the Crocs brand. I also would highlight we're actually probably gaining a lot of share within sandals within HEYDUDE also. It was a strong contributor to the beat in Q2, but not the only thing. I would definitely highlight there are very clearly other silhouettes that are working well within North America and across the globe. The sandal business this year will be $0.5 billion on a global basis. So that is a meaningful business. And if you look at $0.5 billion relative to the sandal market share, there are a few key players that are bigger than that, but we're certainly in the top echelon of sandal players on a global basis. And to your sort of future point, we do believe there is a multiyear significant growth pathway here for the Crocs brand, and it provides a very meaningful diversification. And I think, you may not recall, but as we articulated a number of years ago, why we got into this category. I think the key strategic factors remain very clear. Number one, it's a large category on a global basis. We estimate it's in excess of $30 billion on a global basis. It's an annual refresh category, particularly for women. They refresh their sandal assortment on an annual basis. Our manufacturing techniques and the product that we make, particularly molded, really lends itself to this category. We can bring newness, we can bring fun, we can bring color and we can bring tremendous comfort to the category. And it remains competitively fragmented. And so I think those are the key strategic reasons why we identified this, and we're thrilled that it's playing out as it is, and we're very optimistic for the future. Operator: And the next question comes from Kendall Toscano with Bank of America. Kendall Toscano: I just wanted to follow up again on this revenue recognition shift. I think it's really important to have some visibility on this in order to make sure we understand the relative momentum in your North America D2C business, as well as the split between D2C and wholesale. So maybe if you can at least just tell us what the second quarter North America D2C number would have been excluding the shift? Or sorry, if you had applied this revenue recognition shift to the second quarter, what would the North America D2C number have been? Would it still have been positive? Andrew Rees: Yes. Look, Kendall, I think, look, we wanted to be as transparent as we can be on the shift. I don't think there's any more information that we can give you at this time. But I think we've been really clear. What I would say to your specific question, if this had been in place for the first half of 2026, we would still have been positive in DTC and the Crocs brand in North America. Kendall Toscano: Okay. That's helpful. And then just as a follow-up, I wanted to see on gross margin. It looked like it was down 170 basis points year-over-year, which was a little bit light versus guidance for 150 basis points. Just curious what drove the surprise in the second quarter? Patraic Reagan: Yes. I mean, Kendall, I wouldn't categorize it as a surprise. I would say more evolution. Really the major impact, as it has been for a number of quarters now, overwhelmingly, has been the impact of year-over-year tariffs. And so that's kind of where we are from a fundamental standpoint. What we are working through, and this is a very positive thing and something that we're very excited about and confident in internally as we look at our business, is if you look at our strategic pillars in terms of how we're running the business now and, more importantly, for the future, diversification is a significant pillar of where we're going and part of what we're driving our business towards. And as we move towards ever-increasing diversification, there are some twists and turns along that path where our product mix gets a little bit more complicated, our channel mix gets a little bit more complicated. As Andrew mentioned earlier, we're very fortunate in the fact that one of our major strategic pillars, which is international growth, is exactly on par from a profitability standpoint with North America. So overwhelmingly, where we are from a margin standpoint, the biggest impact by far is the tariff landscape, and that's one that we continue to obviously focus on intently as well as everybody else that's in our place. But really, what we're focused on is diversification and driving our business forward through that diversification lens. Operator: And the next question comes from Anna Andreeva with Piper Sandler. Anna Andreeva: We wanted to follow up on the 3Q guide. Basically asked differently on the underlying basis, excluding this accounting treatment. Are you seeing any change in demand in North America DTC at Crocs quarter-to-date? Obviously, very nice momentum in the business for the past 2 quarters, and you called out a number of franchises that are working well. So definitely, diversification there. And then secondly, on wholesale, you've talked about segmentation for some time. Just curious, what are you seeing at both brands with new versus existing partners? The family channel for Crocs has been challenged, I mean, really for some time. Any improvement in demand from those retailers? And Andrew, I think you mentioned you saw some green shoots with classics in DTC. Just curious if we should think this franchise has troughed and we could be back to growth in the medium term in classics. Andrew Rees: Great. A lot of questions there, Anna. Let me try and hit the high notes on those. So I think the first one that you're trying to get at is, is consumer takeaway from DTC strong and building, right? And I would say, ex the sort of revenue recognition, absolutely. We see growth in consumer takeaway from our sort of DTC channels. And that is really driven by 2 things. One is newness, because we can bring newness to our DTC channels far faster. So whether that newness is in sandals, whether that's in clog diversification, whether that's in Ballet Flat. And there's also new channels, right? So our expansion into social selling on TikTok Shop here in North America, and I would add, increasingly, key markets around the world, is super important, right? I think you actually have been probably at the forefront in trying to quantify and understand that. But that has been meaningful. We also see a super important halo from that to our other DTC channels. So when styles or key creators promote a style on TikTok, we can see that demand going to marketplaces. We can see it going to dot-com. And to some extent, we can also see that going in the store. And we hear from our wholesale partners, why is X, Y and Z spiking? And we can relate it back to that. In terms of wholesale strength, I think I talked about the segmentation. I would say they are increasingly focused on our innovation and newness and are bringing that in more rapidly than they have in the last several quarters. So we're excited about that. I would say the sporting goods channel has been a particularly strong channel for both of our brands. We've seen really great sporting goods support and acceleration both within Crocs and within HEYDUDE. And I actually think that some of the big partners in that channel are some of the most effective and forward-looking retailers that we deal with. And then the last question you had was Classic. Yes, I think we definitely see some stabilization in classics in our DTC business. And while we're diversifying our clogs, we're also very conscious and have some exciting programs coming up where we need to drive innovation into our Classic business as well. We continue to do partnerships and collaborations and licensed products on Classic, which also continues to perform very well. Operator: And the next question comes from Aubrey Tianello with BNP Paribas. Aubrey Tianello: I wanted to ask about the EBIT margin guide for the year, which you reiterated. Given your comments about the marketplace changes being a benefit to EBIT, is there any help you can give us on the magnitude of that accretion, and if there's any other offsets to EBIT margin this year, any other puts and takes to consider on the reiterated guide in the context of marketplace helping? Patraic Reagan: Yes, Aubrey. As you saw, we reaffirmed our guide and feel really confident in terms of where we are for the year. As it relates to kind of magnitude of the revenue recognition shift, we expect a slight improvement as a result of this. But within what we are guiding for the year, we feel that we're in the range. And so what we've previously guided, we feel like, is the best kind of measure of where we are today. So I think more importantly maybe is you see the building confidence in terms of our revenue raises and our sequential EPS raises as we've gone through the year. That's given us the confidence to kind of not only just reiterate, but be very confident in terms of, number one, our ability to generate profits as we're returning to growth in both of these brands. And then number two, just the power of our cash creation and valuation machine, which further underscored, we haven't talked about this on the call today, but the announcement of the $1.5 billion buyback is underpinning the significant message that we have confidence in our business for, not just today, but the foreseeable future, and the ability of us to return significant benefit to our shareholders via stock buybacks. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Andrew Rees, Chief Executive Officer, for any closing remarks. Andrew Rees: So as we close out, I just want to thank everybody for the interest in our company and listening to us over the last hour, and probably just reiterate one key point that Patraic just made, which is we remain incredibly confident in the trajectory of our business. I think the cash-generative capabilities of this business are unbelievable and will allow us to create meaningful shareholder value growth over a sustained period of time. Thank you. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Crocs, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Crocs wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* Now, it’s worth noting Stock Advisor’s total average return is 953% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Crocs. The Motley Fool has a disclosure policy. Crocs (CROX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BARK Inc (NYSE:BARK) delivered Q1 FY2027 revenue of $78.8 million, at the high end of its guidance range, and achieved positive adjusted EBITDA of $600,000, up from $100,000 in the prior year. Subscriber retention improved by over 170 basis points year-over-year, and average order value increased by $0.45 per unit, indicating stronger customer loyalty and spending. Bark Air posted a 37% year-over-year revenue increase to $3.2 million, with over 90% of Q2 seats already sold, demonstrating robust demand. The company is expanding its retail presence with new product launches, including the Lixsters enrichment toy platform, an expanded Crocs partnership, and a new collaboration with Liquid Death, set to roll out across major retailers like Target, Walmart, and Amazon. BARK Inc (NYSE:BARK) ended the quarter debt-free with $16.1 million in cash, and continues to execute a $40 million share repurchase program, reflecting confidence in its financial position. Normalized gross margin remained strong at 63.4%, and the company expects to drive further inventory efficiency, with inventory down over $25 million year-over-year. Total revenue declined significantly year-over-year to $78.8 million from $102.9 million, driven by a smaller subscriber base due to disciplined marketing and promotional spending. D2C revenue, excluding Bark Air, fell to $53.5 million from $86.8 million last year, with orders down about 28% year-over-year, reflecting a continued volume decline. Commerce revenue decreased 11% year-over-year to $12.1 million, impacted by timing issues and a slower-than-expected start to the fiscal year. The company's reported gross margin of 72.7% was inflated by a one-time $7.4 million tariff refund, which is non-recurring and excluded from adjusted EBITDA, masking the underlying normalized margin of 63.4%. Cash balance declined from $19.3 million at fiscal year-end to $16.1 million, due to seasonal working capital build and share repurchases, though the company expects to collect the remaining tariff receivable over coming quarters. Bark Air faces headwinds from geopolitical conditions, including Europe-to-U.S. route challenges and fuel surcharges, which could pressure future profitability. Warning! GuruFocus has detected 3 Warning Signs with BARK. Is BARK fairly valued? Test your thesis with our free DCF calculator. Q: Regarding direct-to-consumer (D2C) and the return to growth in the second half of the year, given what you saw in the first quarter, are you more confident now on that timeline? What key metrics are you watching to determine if that inflection is happening?A: Matt Neeker, Co-Founder and CEO: We are at the same level of confidence as when we entered the year, having planned for the math on new subscribers, retention rates, and average order value. The first quarter showed strong year-over-year performance, with retention up over 170 basis points and good AOV performance. We feel great about hitting the inflection point as planned, and we are even more confident about the commerce side of the business, which allows us to stick to the D2C plan without taking unnatural actions. Q: Can you unpack the main drivers behind the commerce revenue decline in the quarter, and what has you excited about the commerce business for the second half, given the upcoming Girl Scout launch?A: Matt Neeker, Co-Founder and CEO: This is always the slowest quarter, and it was slightly slower than last year due to timing elements slipping from Q4 into Q1. The business is lumpy, but we have great visibility into upcoming big orders. We have been winning market share in the toy category per Nielsen, and we are building strong relationships with major partners like Walmart, Target, Chewy, and Amazon, who are taking our new Lixster product this fall. This eases pressure on the D2C rebuild, allowing us to stick to the plan. Q: What were the key drivers of the strong gross margin performance in the first quarter, and how should we think about the sustainability of this margin level?A: Brian Dosty, Interim CFO: Reported consolidated gross margin was 72.7%, which includes a one-time $7.4 million IEPA tariff recovery related to fiscal 2026 costs. Excluding that, normalized gross margin was 63.4%, compared to 63.8% in the prior year. The strength is driven by our D2C gross margin, which has expanded steadily over the past several years, adding hundreds of basis points. The tariff recovery is not recurring and is excluded from adjusted EBITDA. Q: Can you provide more detail on the new Lixster product launch and its potential impact on the business model?A: Matt Neeker, Co-Founder and CEO: Lixster is a major push into the enrichment category, the fastest-growing segment of dog toys. It solves two problems: it's a durable, easily refillable, and cleanable toy for humans while keeping dogs engaged for over 40 minutes, more than double the current market leader. We have a three-year innovation pipeline for the platform. It operates on a razor-and-blades model, where we seed the toys and expect strong attachment rates and recurring revenue from treat refills. It's being introduced to subscribers now and will roll out to Target, PetSmart, Walmart, Amazon, and Chewy this fall. Q: What is the outlook for Bark Air, and how are you managing the challenges mentioned, such as Europe-to-U.S. routes and fuel surcharges?A: Matt Neeker, Co-Founder and CEO: Bark Air posted $3.2 million in revenue, a 37% increase year-over-year, despite challenges from geopolitical conditions. Demand is strong, with well over 90% of seats already sold for the second quarter. The business continues to perform well and is a key growth driver. Q: Can you elaborate on the cash position and the drivers of the decline from year-end, and what are your expectations for cash generation for the rest of the year?A: Brian Dosty, Interim CFO: We ended the quarter with $16.1 million in cash, down from $19.3 million at fiscal year-end. The decline reflects a normal seasonal build in working capital and continued share repurchases under our $40 million buyback program. Accounts receivable increased by $12.3 million due to the IEPA tariff recovery, which had no cash impact in the period. We have received $3.2 million of the refunds so far and expect to collect the majority of the remaining balance over the coming quarters. Our priority is driving consistent cash generation over the balance of the year. Q: How is the marketing spend discipline playing out, and are you seeing any opportunities to reinvest in customer acquisition?A: Brian Dosty, Interim CFO: First-quarter marketing spend was $9.5 million, down 37% year-over-year. We continue to hold this discipline while remaining prepared to reinvest when efficient customer acquisition opportunities present themselves. The focus is on improving order economics, which are getting better, and we are seeing green shoots in underlying D2C metrics. Q: Can you provide more color on the inventory position and the efficiency improvements you are targeting?A: Brian Dosty, Interim CFO: Inventory was $72.4 million, down from $75.5 million at fiscal year-end and down more than $25 million from $98.1 million a year ago. We expect to drive further inventory efficiency through the balance of fiscal 2027, which should contribute to improved cash generation and working capital management. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in BARK, Inc.? Here are five stocks we like better. Q1 revenue reached $78.8 million, at the high end of guidance, while adjusted EBITDA rose to approximately $600,000 from $100,000 a year earlier. BARK ended the quarter with $16.1 million in cash and no debt. Direct-to-consumer revenue declined because of a smaller subscriber base, but retention improved by more than 170 basis points, average order value increased, and management remains confident the segment will return to growth in the second half of fiscal 2027. BARK expects stronger commerce performance during the holiday season, supported by new products and partnerships including Licksters, expanded Crocs offerings and a Liquid Death collaboration. The company forecast Q2 revenue of $83 million to $85 million and adjusted EBITDA of $1 million to $3 million. Penny stock watch: Is it time to take a bit out of BARK, Inc.? BARK (NYSE:BARK) reported fiscal first-quarter 2027 revenue at the high end of its guidance range, while management pointed to improving subscriber retention, higher average order values and expected growth in its commerce business heading into the holiday season. Revenue totaled $78.8 million, compared with $102.9 million in the prior-year period. The company had guided for first-quarter revenue of $77 million to $79 million. Adjusted EBITDA was approximately $600,000, within its outlook of $0 million to $1 million and up from $100,000 a year earlier. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 3 Upgrades In e-Commerce Moving The Market “Our first quarter results reflect continued profitability alongside underlying momentum in the parts of the business we are most focused on growing,” Co-founder and Chief Executive Officer Matt Meeker said during the earnings call. Total direct-to-consumer revenue was $66.7 million in the quarter. That figure included $3.2 million from BARK Air, up 37% year over year. Excluding BARK Air, direct-to-consumer revenue was $63.5 million, down from $86.8 million in the prior-year quarter. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Interim Chief Financial Officer Brian Dostie said the decline reflected the smaller subscriber base BARK entered the year with after the company reduced marketing and promotional spending during fiscal 2026. Direct-to-consumer orders declined about 28% year over year, while average order value increased by $0.45. Meeker said subscriber retention improved by more than 170 basis points from the prior-year quarter, and that the lifetime value of a BarkBox subscriber was near its highest level since the company became public. He said the company remains at the same level of confidence in its plan to return its direct-to-consumer business to growth in the second half of the year. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling “The revenue decline is a volume story tied to the smaller base, and the per order economics continue to improve,” Dostie said. Commerce revenue was $12.1 million, down 11% from the prior-year period. Management characterized the segment as seasonal and “lumpy,” noting that some activity that may have occurred in the first quarter shifted into the previous fourth quarter. Meeker said BARK expects commerce revenue to increase meaningfully as it approaches the holiday season. The company plans to launch products through the Girl Scout Cookie program this winter and cited expansion with both current and new retail, wholesale and marketplace partners. The company also highlighted several upcoming product launches: Licksters: A new enrichment toy and treat-refill platform that is being introduced to subscribers and is expected to roll out at Target, PetSmart, Walmart, Amazon and Chewy in the fall. Crocs for Dogs: BARK plans to expand its Crocs partnership in October 2026 with toys, beds, accessories and additional colorways for dog shoes. Liquid Death collaboration: BARK plans to introduce a co-designed line of pet toys and accessories with Liquid Death in the fall. Meeker said the Licksters platform could provide recurring revenue from treat refills as consumers purchase the toys. He also said BARK’s Crocs dog shoes had been its most successful TikTok product launch to date. Reported consolidated gross margin was 72.7%, including approximately $7.4 million of IEEPA tariff recoveries related to fiscal 2026 cost of revenue. Excluding that nonrecurring recovery, normalized gross margin was 63.4%, compared with 63.8% in the prior-year period on a normalized tariff-adjusted basis. The tariff recovery was recorded as a receivable during the quarter, had no cash impact during the period and was excluded from adjusted EBITDA. As of the balance-sheet date, BARK had received $3.2 million of the refunds and expects to collect most of the remaining receivable over the coming quarters, according to Dostie. Marketing expense fell 37% year over year to $9.5 million. Shipping and fulfillment expense declined to $23.8 million from $31.8 million, improving modestly as a percentage of revenue to 30.2% from 30.9%. Other general and administrative expense was $23.9 million, down approximately 6% from a year earlier. BARK ended the quarter with $16.1 million in cash and no debt, compared with $19.3 million in cash at fiscal year-end. Dostie said the decline reflected seasonal working-capital needs and continued share repurchases under the company’s $40 million buyback program. Inventory was $72.4 million, down from $75.5 million at fiscal year-end and more than $25 million below the $98.1 million reported a year earlier. For the fiscal second quarter, BARK projected revenue of $83 million to $85 million and adjusted EBITDA of $1 million to $3 million. The company reiterated its full-year revenue and adjusted EBITDA guidance, though management did not provide the full-year figures during the call. Meeker said more than 90% of BARK Air seats had already been sold for the second quarter, despite challenges related to Europe-to-U.S. routes and fuel surcharges. He said the company remains focused on sequential top-line growth and improved adjusted EBITDA profitability through the remainder of fiscal 2027. BARK is a consumer products and services company focused on the canine market, offering a suite of subscription-based and direct‐to‐consumer offerings designed to meet the everyday needs of dogs and their owners. The company's core business revolves around carefully curated boxes of toys, treats and chews, which are delivered monthly to subscribers through its flagship BarkBox service. Over time, BARK has expanded its reach beyond subscription, tapping into e-commerce and wholesale channels to broaden its customer base. In addition to BarkBox, the company operates BarkShop, an online storefront that allows customers to purchase toys, grooming supplies and nutrition products on an a la carte basis. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BARK Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record enterprise revenue of $1.2 billion, marking the first time the Crocs brand exceeded $1 billion in a single quarter. Performance was driven by successful product diversification beyond the classic clog, specifically through the expansion of the sandal category and new clog franchises like Echo and Crocband. International markets served as a primary growth engine, with double-digit gains in China, India, and Japan offsetting domestic wholesale headwinds. HEYDUDE showed signs of stabilization with direct-to-consumer growth of 7%, supported by a focus on core consumers and reduced reliance on performance marketing. Management attributed North American wholesale declines to a deliberate strategy of tightening channel inventory and improving segmentation across key retail partners. Social commerce emerged as a critical engagement tool, highlighted by TikTok Shop's first-ever global Super Brand Day and the launch of shoppable digital series. Raised full-year 2026 enterprise revenue growth guidance to 1% to 2%, reflecting increased confidence in the HEYDUDE brand's return to growth in the second half. Anticipates a return to growth for HEYDUDE in Q4, supported by easier year-over-year comparisons following the strategic inventory resets implemented in late 2025. Guidance assumes continued international strength will offset a projected annual decline in North American revenue, though the rate of domestic decline is expected to narrow. Management expects the sandal category to remain a multi-year growth driver, targeting a $30 billion global market through annual style refreshes and material innovation. Full-year adjusted operating margins are expected to expand modestly from the 22.3% level reported in fiscal year '25. Announced a business model shift with a major North American marketplace partner starting in Q3, which will reclassify certain D2C revenues as wholesale. This accounting change will result in lower reported D2C revenue and higher wholesale revenue but is expected to be neutral to units sold and slightly accretive to operating profit. The Board approved a new $1.5 billion share repurchase authorization, bringing the total available capacity to approximately $2 billion. Tariff impacts remain a significant headwind to gross margins, with a 300 basis point impact noted for the fourth quarter of the prior year serving as a comparison point. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified the shift is a revenue recognition change to align with a major partner's business model, moving revenue from D2C to wholesale channels. The change is expected to be neutral for market share and units but will result in lower overall reported revenue due to the accounting treatment. Despite this headwind to reported revenue, management raised the Crocs brand full-year guidance, indicating underlying organic strength. The sandal business is on track to reach $0.5 billion globally this year, with growth rates significantly outpacing the broader category. Management views sandals as a key diversification tool that attracts a different consumer profile and encourages more frequent annual purchases compared to clogs. Management reported 'green shoots' and stabilization in the Classic Clog within domestic D2C channels. The strategy involves maintaining the icon's relevance through collaborations while aggressively growing newer franchises to reduce reliance on a single silhouette.

Crocs, Inc. CROX reported second-quarter 2026 adjusted earnings of $4.55 per share, up 7.6% year over year. The figure surpassed the Zacks Consensus Estimate of $4.32 by 5.3%.Consolidated revenues rose 2.6% year over year to $1.18 billion and came above the consensus mark of $1.15 billion. Strength in direct-to-consumer (DTC) sales and international demand offset wholesale weakness. The Crocs brand also surpassed $1 billion in quarterly revenues for the first time. Despite earnings and revenues beating estimates as well as raised guidance, Crocs’ shares have dropped more than 7% in the pre-trading session. The downside might be owing to softness at Wholesale business and the HEYDUDE brand. This Zacks Rank #4 (Sell) stock has lost 4% in the past month against the industry’s 11.1% growth. Crocs, Inc. price-consensus-eps-surprise-chart | Crocs, Inc. Quote DTC revenues increased 12% year over year, or 11.3% on a constant-currency basis. The performance reflected solid consumer demand and a favorable response to new product innovation across the company’s brands.Wholesale revenues declined 7.2%, or 7.6% at constant currency. The channel divergence indicates that company-operated stores and digital platforms remained the main growth engines, while wholesale partners continued to manage purchases cautiously. Crocs brand revenues increased 4.3% year over year to $1 billion, surpassing the Zacks Consensus Estimate of $982 million. On a constant-currency basis, sales advanced 3.7%. Direct-to-consumer revenues rose 12.9% to $558.9 million, while wholesale revenues fell 5% to $441.5 million.International revenues increased 7.8% to $541.7 million, supported by a 23.7% surge in direct-to-consumer sales. North American revenues edged up 0.4% to $458.7 million, as a 5.4% DTC increase offset an 8.4% wholesale decline. HEYDUDE brand revenues declined 5.7% year over year to $179 million. Although the brand’s revenues dipped year over year, the metric came above the Zacks Consensus Estimate of $167 million.The decrease was driven by a 17.2% fall in wholesale revenues to $82.6 million, highlighting continued challenges within the brand’s partner distribution channel. HEYDUDE’s DTC revenues increased 7.2% to $96.5 million. Adjusted gross profit dipped 0.2% year over year to $707.5 million. Adjusted gross margin contracted 170 basis points to 60%, reflecting lower brand margins and costs related to distribution transitions.Adjusted selling, general and administrative expenses increased 3.1% to $411.8 million. These expenses represented an increase of 20 basis points to 34.9% of revenues. Adjusted operating income declined 4.5% to $295.6 million, while the adjusted operating margin contracted 180 basis points to 25.1%. Cash provided by operating activities totaled $351.7 million in the second quarter, up from $285.8 million a year earlier. After $20.7 million in capital expenditures, free cash flow reached $331 million compared with $269.2 million in the prior-year period.Crocs ended the quarter with $170.3 million in cash and cash equivalents and $1.3 billion in total borrowings. Inventories declined 3.9% year over year to $389.2 million, indicating disciplined inventory management.During the reported quarter, the company repaid $31 million of debt and repurchased roughly 2.3 million shares for $251 million. The average repurchase price was $106.87 per share. The board subsequently approved a $1.5 billion increase in the share repurchase authorization to approximately $2 billion. For 2026, management now expects revenues to increase 1-2% year over year compared with its previous projection of a 1% decline to 1% growth. Crocs brand revenues are forecast to rise 2-3%, while HEYDUDE revenues are expected to decline 2-4%. Earlier, management had predicted Crocs brand revenues in the range of flat to up 2% and HEYDUDE revenues to decrease 5-7%.Adjusted earnings are now projected between $13.70 and $14.00 per share, up from the prior range of $13.20-$13.75. This view does not assume any impacts of potential future share repurchases. Adjusted operating margin is expected to expand modestly from 22.3%, while capital expenditures are forecast between $70 million and $80 million. Non-GAAP adjustments are expected to be roughly $25 million, mainly related to cost-reduction initiatives.For the third quarter, Crocs expects revenues to remain roughly flat year over year, at currency rates as of July 27, 2026. Crocs brand revenues are likely to grow approximately 1% year over year, while the HEYDUDE brand is likely to decline nearly 3% to flat compared with the third quarter of 2025. Adjusted operating margin is projected at approximately 21.5%, with adjusted earnings of $3.20-$3.30 per share. Duluth Holdings Inc. DLTH, which deals in casual wear, workwear and accessories for men and women, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Duluth Holdings delivered a trailing four-quarter earnings surprise of 107.5%, on average. The Zacks Consensus Estimate for DLTH’s current financial-year EPS indicates growth of 39.5% from the year-ago number. Columbia Sportswear COLM engages in marketing and distribution of outdoor and active lifestyle apparel, footwear and accessories, and currently carries a Zacks Rank of 2 (Buy).The Zacks Consensus Estimate for COLM’s current financial-year EPS is expected to rise 4.6% from the corresponding year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average.Ralph Lauren Corporation RL, which is a designer and marketer of premium lifestyle products, currently carries a Zacks Rank of 2. RL delivered a trailing four-quarter earnings surprise of 9.1%, on average. The Zacks Consensus Estimate for Ralph Lauren’s current financial-year EPS indicates growth of 10.5% from the year-ago number. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Crocs, Inc. (CROX) : Free Stock Analysis Report Columbia Sportswear Company (COLM) : Free Stock Analysis Report Ralph Lauren Corporation (RL) : Free Stock Analysis Report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Crocs (CROX) came out with quarterly earnings of $4.55 per share, beating the Zacks Consensus Estimate of $4.32 per share. This compares to earnings of $4.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.32%. A quarter ago, it was expected that this footwear company would post earnings of $2.78 per share when it actually produced earnings of $2.99, delivering a surprise of +7.55%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Crocs, which belongs to the Zacks Textile - Apparel industry, posted revenues of $1.18 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.79%. This compares to year-ago revenues of $1.15 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Crocs shares have added about 56.1% since the beginning of the year versus the S&P 500's gain of 6.9%. While Crocs has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Crocs was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.54 on $1.02 billion in revenues for the coming quarter and $13.66 on $4.08 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Textile - Apparel is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Savers Value Village (SVV), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This retailer of second-hand merchandise is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Savers Value Village's revenues are expected to be $450.09 million, up 7.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Crocs, Inc. (CROX) : Free Stock Analysis Report Savers Value Village, Inc. (SVV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research