Crocs (NASDAQ:CROX) shares jumped roughly 15% in premarket trading Thursday after the footwear group delivered a stronger-than-expected fourth quarter and issued an earnings outlook for 2026 that comfortably topped Wall Street forecasts.
For the fourth quarter, Crocs reported earnings per share of $2.29, beating the consensus estimate of $1.91. Revenue reached $958 million, exceeding analyst expectations of $916.09 million, though down 4.2% on a constant-currency basis compared with a year earlier.
Sales trends were mixed across channels. Direct-to-consumer revenue rose 3.6% on a constant-currency basis, while wholesale revenue declined 15.5% over the same period.
Profitability softened year over year, with adjusted gross margin contracting 320 basis points to 54.7%, down from 57.9% in the prior-year quarter.
Looking ahead, Crocs projected fiscal 2026 earnings per share between $12.88 and $13.35, well above the consensus forecast of $11.92. The company expects full-year revenue to range from a decline of about 1% to a slight increase compared with fiscal 2025, based on currency rates as of February 9, 2026.
Management also flagged approximately $25 million in non-GAAP adjustments tied mainly to supply chain optimization and cost-efficiency initiatives. Adjusted operating margin is expected to improve modestly from the prior year’s 22.3%, reinforcing investor confidence in the company’s profit trajectory despite uneven top-line growth.