Crocs, Inc.
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
CROX$151.86-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001334036-25-000054
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001334036-25-000085
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 90 previous paragraphs and 109 current paragraphs.
58 unchanged; 27 reworded; 23 added; 5 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
•We completed quantitative assessments for the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill in the three months ended June 30, 2025 as a result of a triggering event. The triggering event was due to downward revisions to our internal HEYDUDE Brand forecast, as a result of the extended time we believe it will now take us to stabilize the HEYDUDE Brand and return it to growth. This was partly due to the current and projected impact of a weak U.S. consumer and the disproportionate impact of tariffs on HEYDUDE Brand products, which became evident in the three months ended June 30, 2025. We recognized non-cash impairment charges of $430.0 million related to the indefinite-lived HEYDUDE trademark and $307.0 million related to our HEYDUDE Brand reporting unit goodwill during the three months ended June 30, 2025. See Note 3 — Goodwill and Intangible Assets, Net in the accompanying notes to the condensed consolidated financial statements included in Part I - Item 1. Financial Statementsof this Quarterly Report on Form 10-Q and the risk factor under “Government actions and regulations, such as export restrictions, tariffs, and other trade protection measures could adversely affect our business” in the section entitled “Risk Factors” under Item 1A in this report for additional information.
Current report
•Asset impairments were $738.1 million, primarily driven by the partial impairment of the HEYDUDE indefinite-lived trademark and HEYDUDE Brand reporting unit goodwill. Refer to Note 3 — Goodwill and Intangible Assets, Net in the accompanying notes to the condensed consolidated financial statements included in Part I - Item 1. Financial Statementsof this Quarterly Report on Form 10-Q.
Current report
•Income (loss) from operations decreased to a loss from operations of $427.5 million from income from operations of $325.7 million in last year’s second quarter. Net loss was $492.3 million, or net loss per diluted share of $8.82, compared to net income of $228.9 million, or net income per diluted share of $3.77, in last year’s second quarter. The loss from operations is due to asset impairments, as described above.
Current report
Revenues. In the three months ended June 30, 2025, revenues increased compared to the same period in 2024, primarily due to higher volume of $36.6 million, or 3.3%, driven by the Crocs Brand, partially offset by lower volume in the HEYDUDE Brand. Net favorable foreign currency fluctuations of $7.4 million, or 0.7%, primarily in the Euro, also increased revenues. The overall increase in revenues was offset in part by lower ASP of $6.2 million, or 0.6%, driven by unfavorable product mix in both brands, partially offset by favorable channel mix in the HEYDUDE Brand and reduced discounting in the Crocs Brand.
Current report
Revenues also increased in the six months ended June 30, 2025, primarily due to higher volume of $72.3 million, or 3.5%, driven by the Crocs Brand, partially offset by lower volume in the HEYDUDE Brand. Lower ASP of $28.8 million, or 1.4%, decreased the overall increase in revenues, mainly due to increased discounting in the Crocs Brand. This was offset in part by favorable product mix in the Crocs Brand and favorable channel mix in the HEYDUDE Brand. Net unfavorable foreign currency fluctuations of $6.9 million, or 0.3%, primarily in the South Korean Won and Brazilian Real, also decreased revenues.
Current report
Gross margin. Gross margin increased in the three months ended June 30, 2025, to 61.7% compared to 61.4% in the same period in 2024, primarily due to reduced discounting in the Crocs Brand of 30 basis points.
Current report
Gross margin in the six months ended June 30, 2025, was 59.9% compared to 58.7% in 2024. This was primarily driven by favorable customer mix of 40 basis points and favorable product mix of 20 basis points, both in the Crocs Brand. Favorable brand mix of 20 basis points also increased gross margin.
Current report
Selling, general and administrative expenses. SG&A increased $42.1 million, or 11.8%, in the three months ended June 30, 2025, compared to the same period in 2024, driven by increased investment in talent of $17.5 million, higher DTC costs, including investments and variable costs, of $14.2 million, increased investment in marketing of $10.2 million, and net increases in other costs of $0.2 million.
Current report
SG&A expenses increased $89.1 million, or 14.2%, during the six months ended June 30, 2025, compared to the same period in 2024, primarily driven by increased investment in talent and marketing of $34.8 million and $24.2 million, respectively, higher DTC costs, including investments and variable costs, of $23.6 million, and net increases in other costs of $6.5 million.
Current report
Asset impairments. Asset impairments were $738.1 million during the three months ended June 30, 2025, primarily due to a triggering event for the HEYDUDE Brand indefinite-lived intangible assets (which consists solely of the HEYDUDE trademark) (the “trademark”) and the HEYDUDE Brand reporting unit (the “reporting unit”) goodwill. The triggering event was due to downward revisions during the three months ended June 30, 2025, to our internal HEYDUDE Brand forecast as a result of the extended time we believe it will now take us to stabilize the HEYDUDE Brand and return it to growth. This was partly due to the current and projected impact of a weak U.S. consumer and the disproportionate impact of tariffs on HEYDUDE Brand products, which became evident in the three months ended June 30, 2025. As a result, we completed quantitative assessments for the trademark and the reporting unit goodwill in the three months ended June 30, 2025, which resulted in non-cash impairment charges of $430.0 million for the trademark and $307.0 million for HEYDUDE Brand reporting unit goodwill. For additional information, refer to Note 3 — Goodwill and Intangible Assets, Net in the accompanying notes to the condensed consolidated financial statements included in Part I - Item 1. Financial Statementsof this Quarterly Report on Form 10-Q.
Current report
Asset impairments increased $714.0 million during the six months ended June 30, 2025, compared to the same period in 2024, primarily due to non-cash impairment charges in the current year of $430.0 million related to the indefinite-lived HEYDUDE trademark and $307.0 million for HEYDUDE Brand reporting unit goodwill, as described above. The increase in asset impairments was partially offset by prior year non-cash impairment charges of $18.2 million for information technology systems related to the HEYDUDE integration, $5.5 million for our former HEYDUDE Brand warehouses in Las Vegas, Nevada, and $0.4 million for our former Crocs Brand warehouse in Oudenbosch, the Netherlands, none of which recurred in the current year.
Current report
During the six months ended June 30, 2025, income tax expense decreased $20.6 million compared to the same period in 2024. The effective tax rate for the six months ended June 30, 2025 was (36.3)% compared to an effective tax rate of 22.2% for the same period in 2024, a 58.5% decrease. The effective tax rate was impacted by the HEYDUDE impairments in 2025, as described above, which are not deductible for tax purposes. As a result of a prior year intra-entity transaction, the value of the intellectual property for tax purposes is subject to revaluation and therefore there are not similar impacts for tax as a result of the intellectual property impairment. Our effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate primarily due to differences in income tax rates between U.S. and foreign jurisdictions.
Current report
The increase in Crocs Brand revenues in the six months ended June 30, 2025, compared to the same period in 2024 was due to higher volume. The overall increase in Crocs Brand revenues was offset in part by lower ASP, mainly due to increased discounting, partially offset by favorable product mix, and net unfavorable foreign currency fluctuations, primarily in the South Korean Won and Brazil Real.
Current report
During the six months ended June 30, 2025, income from operations for our Crocs Brand was $632.0 million, an increase of $12.3 million, or 2.0%, compared to the same period in 2024. Gross margin was 62.6%, an increase of 120 basis points, primarily due to favorable customer mix and favorable product mix.
Current report
SG&A, including asset impairments, for our Crocs Brand increased $46.3 million, or 11.6%, during the six months ended June 30, 2025, compared to the same period in 2024, primarily due to higher costs in the DTC channel, including investments and variable costs, and increased investments in talent and marketing.
Current report
SG&A, including asset impairments, for the HEYDUDE Brand segment increased $746.7 million, or 1,367.3%, during the three months ended June 30, 2025, compared to the same period in 2024. This increase was primarily due to the partial impairment of the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill, as discussed above. SG&A for the HEYDUDE Brand also increased due to higher costs in the DTC channel, including investments and variable costs, and increased investments in marketing and talent.
Current report
Loss from operations for the HEYDUDE segment was $682.7 million for the six months ended June 30, 2025, a decrease of $765.2 million, or 927.4%, compared to income from operations in the same period in 2024. Gross margin was 48.5%, an increase of 90 basis points, driven in part by prior year transition costs and infrastructure investments associated with the move to our new HEYDUDE distribution center in Las Vegas, Nevada that did not recur in the current year.
Current report
During the three months ended June 30, 2025, total net costs within ‘Enterprise corporate’ increased $7.8 million, or 10.8%, compared to the same period in 2024. This increase was primarily due to upfront costs incurred related to savings initiatives, including severance costs, and costs related to the discontinuation of an information technology project.
Current report
Impairment of Goodwill and Indefinite-Lived Intangible Assets
Current report
We evaluate the carrying value of our indefinite-lived intangible assets and goodwill at least annually or when an interim triggering event has occurred indicating potential impairment. During the three months ended June 30, 2025, there was a triggering event for the HEYDUDE Brand indefinite-lived intangible assets (which consists solely of the HEYDUDE trademark) (the “trademark”) and the HEYDUDE Brand reporting unit (the “reporting unit”) goodwill. The triggering event was due to downward revisions, during the three months ended June 30, 2025, to our internal HEYDUDE Brand forecast as a result of the extended time we believe it will now take us to stabilize the HEYDUDE Brand and return it to growth. This was partly due to the current and projected impact of a weak U.S. consumer and the disproportionate impact of tariffs on HEYDUDE Brand products, which became evident in the three months ended June 30, 2025. As a result, we completed quantitative assessments for the trademark and the reporting unit goodwill in the three months ended June 30, 2025 and recognized non-cash impairment charges of $430.0 million and $307.0 million, respectively. For more detailed information about our accounting conclusions and key assumptions used, refer to Note 3 — Goodwill and Intangible Assets, Net in the accompanying notes to the condensed consolidated financial statements included in Part I - Item 1. Financial Statementsof this Quarterly Report on Form 10-Q.
Current report
Our goodwill balance as of June 30, 2025 and December 31, 2024 was $404.7 million and $711.5 million, respectively. As of June 30, 2025, a goodwill amount of $403.0 million was assigned to the HEYDUDE Brand segment.
Current report
Our impairment evaluations represent a critical accounting policy as they require significant judgments and assumptions that we believe to be reasonable but that are inherently uncertain and unpredictable. The primary assumptions developed by management and used in the quantitative assessments included annual revenue growth rates, averaging approximately 8% for both the trademark and reporting unit goodwill, projected earnings before interest, taxes, depreciation, and amortization (“EBITDA”) margins, averaging approximately 20% for both the trademark and reporting unit goodwill, and a market-based discount rate of 15% for both the trademark and reporting unit goodwill, which was based on, most significantly, a risk-free rate of return, an equity market risk premium, and a company-specific risk premium. Changes in the assumptions used to estimate the fair value of our goodwill and indefinite-lived intangible assets could result in additional impairment charges in future periods as the key assumptions are inherently uncertain, require significant judgment and are subject to change based on, among others, industry and geopolitical conditions, our ability to navigate changing macroeconomic conditions and trends as well as the timing and success of strategic initiatives.
Current report
Certain factors, such as failure to achieve forecasted revenue growth rates, EBITDA margins, or increases in the discount rates, have the potential to create variances in the estimated fair values of our goodwill and indefinite-lived intangible assets that could result in additional impairment charges in future periods. Refer to the risk factor under “Government actions and regulations, such as export restrictions, tariffs, and other trade protection measures could adversely affect our business” in the section entitled “Risk Factors” under Item 1A in this report for additional information.
Removed paragraphs (5)
Previous report
•We continue to invest in talent, marketing, digital, and retail to drive our strategic pillars, including awareness and relevance for our brands and iconic product, increased market share in our core markets, and product diversification into sandals, sneakers, and other key silhouettes. We also remain focused on launching and scaling digital marketplaces and selectively adding retail stores for both brands.
Previous report
•Income from operations decreased to $223.0 million from $226.4 million in last year’s first quarter. Net income was $160.1 million, or $2.83 per diluted share, compared to $152.5 million, or $2.50 per diluted share, in last year’s first quarter.
Previous report
Korean Won, also decreased revenues. The overall decrease in revenues was partially offset by higher volume of $35.6 million, or 3.8%, driven by the Crocs Brand.
Previous report
Gross margin. Gross margin increased in the three months ended March 31, 2025 to 57.8% compared to 55.6% in the same period in 2024, primarily driven by lower product costs of 150 basis points and favorable customer mix of 140 basis points, both related to the Crocs Brand. There were also several less significant drivers offsetting the overall increase to gross margin, including unfavorable channel mix and increased promotions for the Crocs Brand.
Previous report
Selling, general and administrative expenses. SG&A increased $22.9 million, or 7.8%, in the three months ended March 31, 2025 compared to the same period in 2024, primarily driven by increases of $17.4 million in compensation costs, $14.0 million in marketing costs, $9.4 million in the DTC channel, including investments and variable costs, and net increases in other costs of $6.2 million. The overall increase in SG&A was partially offset by a prior year $18.2 million impairment charge for information technology systems related to the HEYDUDE integration and a prior year $5.9 million impairment charge related to our former warehouses in Las Vegas, Nevada and the Netherlands, both of which did not recur in the current year.
Reworded paragraphs (27)
Previous wording
•We continue to operate in an environment where consumers are feeling the effects of elevated interest rates and inflation, among other things, and as a result, they are spending more unpredictably. In addition, geopolitical tensions have increased across the globe. In March 2025, the United States (“U.S.”) clarified no additional tariffs are due on goods from Mexico that qualify for preferential treatment under the United States-Mexico-Canada Agreement (“USMCA”). Our products currently qualify for USMCA preference, and as such, the additional tariff on imports from Mexico is not applicable to us. In April 2025, the U.S. imposed a minimum 10% tariff on most foreign imports into the U.S. and additional individualized reciprocal tariffs on imports from certain countries, including, most relevant to us, an additional 125% tariff on all imports from China for a total incremental tariff of 145% and an additional 46%, 32%, 26%, and 49% tariff on all imports from Vietnam, Indonesia, India, and Cambodia, respectively. As of the date of this Quarterly Report, implementation of the reciprocal tariffs, other than those levied on China, has been declared to be temporarily paused. We are continuing to monitor developments with respect to these policy changes and proposals, as well as exploring options to mitigate potential impacts of tariffs, including diversifying our sourcing mix, reducing product costs, and evaluating the potential for price increases. See the risk factor under “Government actions and regulations, such as export restrictions, tariffs, and other trade protection measures could adversely affect our business” in the section entitled “Risk Factors” under Item 1A in this report for additional information.
Current wording
•We continue to operate in an environment where consumers are feeling the effects of elevated interest rates, inflation, and future expected price increases, among other things, and as a result, there is more pressure on discretionary spending. Given this, our wholesale partners are also acting cautiously. In addition, geopolitical tensions have increased across the globe. In 2025, the United States (“U.S.”) has imposed tariffs on foreign imports from multiple countries, including, most relevant to us, a total tariff of 20%, 30%, 19%, 50%, and 19% on all imports from Vietnam, China, Indonesia, India, and Cambodia, respectively. We are continuing to monitor developments with respect to these policy changes and proposals. We have begun to mitigate the potential impacts of tariffs and the resulting effect on the consumer, including diversifying our sourcing mix, refining our cost structure, and implementing select price increases. See the risk factor under “Government actions and regulations, such as export restrictions, tariffs, and other trade protection measures could adversely affect our business” in the section entitled “Risk Factors” under Item 1A in this report for additional information. For the Crocs Brand, we began reducing promotional activity during the three months ended June 30, 2025, which will protect brand health and profitability.
Previous wording
•Our liquidity position remains strong with $166.5 million in cash and cash equivalents and $694.4 million in available borrowing capacity as of March 31, 2025. Our total borrowings were $1.5 billion as of March 31, 2025. We repurchased $60.9 million of our common stock during the quarter.
Current wording
•Our liquidity position remains strong with $200.6 million in cash and cash equivalents and $799.4 million in available borrowing capacity as of June 30, 2025. Our total borrowings were $1.4 billion as of June 30, 2025. We repurchased $133.2 million of our common stock during the quarter.
Previous wording
First Quarter 2025 Financial and Operational Highlights
Current wording
Second Quarter 2025 Financial and Operational Highlights
Previous wording
Revenues were $937.3 million for the first quarter of 2025, a 0.1% decrease compared to the first quarter of 2024. The decrease was due to the net effects of: (i) lower average selling price on a constant currency basis (“ASP”) in the Crocs Brand, offset in part by higher ASP in the HEYDUDE Brand, which decreased revenues by $22.6 million, or 2.4%; (ii) net unfavorable changes in exchange rates, which decreased revenues by $14.3 million, or 1.5%; and (iii) higher unit sales volume in the Crocs Brand, partially offset by lower unit sales volume in the HEYDUDE Brand, which resulted in a net increase in revenues of $35.6 million, or 3.8%.
Current wording
Revenues were $1,149.4 million for the second quarter of 2025, a 3.4% increase compared to the second quarter of 2024. The increase was due to the net effects of: (i) higher unit sales volume in the Crocs Brand, partially offset by lower unit sales volume in the HEYDUDE Brand, which resulted in a net increase in revenues of $36.6 million, or 3.3%; (ii) net favorable changes in exchange rates, which increased revenues by $7.4 million, or 0.7%; and (iii) lower average selling price on a constant currency basis (“ASP”) driven by the Crocs Brand, partially offset by higher ASP in the HEYDUDE Brand, which decreased revenues by $6.2 million, or 0.6%.
Previous wording
•We grew revenues in the Crocs Brand by 2.4%, or 4.2% on a constant currency basis, compared to the same period in 2024. HEYDUDE Brand revenues decreased 9.8%, or 9.5% on a constant currency basis.
Current wording
•We grew revenues in the Crocs Brand by 5.0%, or 4.2% on a constant currency basis, compared to the same period in 2024. HEYDUDE Brand revenues decreased 3.9%, or 4.2% on a constant currency basis.
Previous wording
•Gross margin was 57.8%, an increase of 220 basis points from last year’s first quarter. This was primarily due to lower product costs and favorable customer mix for the Crocs Brand.
Current wording
•Gross margin was 61.7%, an increase of 30 basis points from last year’s second quarter, primarily due to reduced discounting in the Crocs Brand.
Previous wording
•Selling, general and administrative expenses (“SG&A”) were $318.6 million compared to $295.6 million in the first quarter of 2024, primarily as a result of higher costs in the DTC channel. As a percent of revenues, SG&A increased to 34.0% of revenues compared to 31.5% of revenues in the first quarter of 2024.
Current wording
•Selling, general and administrative expenses (“SG&A”) were $398.2 million compared to $356.2 million in the second quarter of 2024, primarily as a result of increased investment in marketing and higher costs in the DTC channel. As a percent of revenues, SG&A increased to 34.6% of revenues compared to 32.0% of revenues in the second quarter of 2024.
Previous wording
Foreign currency gains (losses), net. Foreign currency gains (losses), net, consist of realized and unrealized foreign currency gains and losses from the remeasurement and settlement of monetary assets and liabilities denominated in non-functional currencies as well as realized and unrealized gains and losses on foreign currency derivative instruments. During the three months ended March 31, 2025, we recognized realized and unrealized net foreign currency gains of $4.9 million compared to losses of $2.3 million during the three months ended March 31, 2024.
Current wording
Foreign currency gains (losses), net. Foreign currency gains (losses), net, consist of realized and unrealized foreign currency gains and losses from the remeasurement and settlement of monetary assets and liabilities denominated in non-functional currencies as well as realized and unrealized gains and losses on foreign currency derivative instruments. During the three months ended June 30, 2025, we recognized realized and unrealized net foreign currency gains of $0.4 million compared to losses of $1.3 million during the three months ended June 30, 2024.
Previous wording
Interest expense. Interest expense during the three months ended March 31, 2025 decreased $7.8 million, or 25.5%, compared to the three months ended March 31, 2024. The decrease in interest expense for the three months ended March 31, 2025 was due to lower outstanding borrowings and lower weighted average interest rates on the Term Loan B Facility (as defined herein) in the current year.
Current wording
Interest expense. Interest expense during the three months ended June 30, 2025, decreased $6.6 million, or 22.8%, compared to the three months ended June 30, 2024. Interest expense during the six months ended June 30, 2025, decreased $14.4 million, or 24.2%, compared to the six months ended June 30, 2024. The decrease in interest expense for the three and six months ended June 30, 2025, was due to lower outstanding borrowings and lower weighted average interest rates on the Term Loan B Facility (as defined herein) and the Revolving Facility (as defined herein) in the current year.
Previous wording
Income tax expense. During the three months ended March 31, 2025, income tax expense increased $3.3 million compared to the same period in 2024. The effective tax rate for the three months ended March 31, 2025 was 21.9% compared to an effective tax rate of 21.4% for the same period in 2024, a 0.5% increase. This increase in the effective tax rate was primarily driven by a shift in the mix of the Company's domestic and foreign earnings. Our effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate due to differences in income tax rates between U.S. and foreign jurisdictions.
Current wording
Income tax expense. During the three months ended June 30, 2025, income tax expense decreased $23.8 million compared to the same period in 2024. The effective tax rate for the three months ended June 30, 2025, was (9.7)% compared to an effective tax rate of 22.8% for the same period in 2024, a 32.5% decrease. The effective tax rate was impacted by the HEYDUDE impairments in 2025, as described above, which are not deductible for tax purposes. Our effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate due to differences in income tax rates between U.S. and foreign jurisdictions.
Previous wording
Revenues. Crocs Brand revenues increased in the three months ended March 31, 2025 compared to the same period in 2024, due to higher volume. The overall increase was partially offset by lower ASP, driven by increased promotions and unfavorable product mix. Net unfavorable foreign currency fluctuations, primarily in the South Korean Won, also decreased revenues.
Current wording
Revenues. Crocs Brand revenues increased in the three months ended June 30, 2025, compared to the same period in 2024, primarily due to higher volume. Net favorable foreign currency fluctuations, primarily in the Euro, also increased revenues. The overall increase was partially offset by lower ASP, driven by unfavorable product mix, offset in part by reduced discounting.
Previous wording
Income from Operations. Income from operations for our Crocs Brand segment was $273.6 million for the three months ended March 31, 2025, an increase of $9.5 million, or 3.6%, compared to the same period in 2024. Gross margin was 60.7%, an increase of 260 basis points compared to prior year, driven primarily by lower product costs and favorable customer mix, partially offset by unfavorable channel mix and increased promotions.
Current wording
Income from Operations. Income from operations for our Crocs Brand segment was $358.4 million for the three months ended June 30, 2025, an increase of $2.8 million, or 0.8%, compared to the same period in 2024. Gross margin was 64.1%, flat to prior year.
Previous wording
SG&A for our Crocs Brand segment increased $20.7 million, or 12.3%, during the three months ended March 31, 2025 compared to the same period in 2024. This increase was primarily due to higher costs in the DTC channel, including investments and variable costs, and increased investments in talent.
Current wording
SG&A for our Crocs Brand segment increased $25.7 million, or 11.1%, during the three months ended June 30, 2025, compared to the same period in 2024. This increase was primarily due to higher costs in the DTC channel, including investments and variable costs, and increased investments in talent and marketing.
Previous wording
Revenues. For the three months ended March 31, 2025, revenues decreased compared to 2024, primarily due to lower volume. This was offset in part by higher ASP, primarily due to favorable channel mix toward DTC and favorable product mix, partially offset by unfavorable customer mix.
Current wording
Revenues. For the three months ended June 30, 2025, HEYDUDE Brand revenues decreased compared to the same period in 2024, primarily due to lower volume. Higher ASP, primarily due to favorable channel mix, partially offset by unfavorable product mix, slightly offset the overall decrease in revenues.
Previous wording
Revenues. In the three months ended March 31, 2025, revenues slightly decreased compared to the same period in 2024, due in part to lower ASP in the Crocs Brand as a result of increased promotions and unfavorable product mix. This was partially offset by higher ASP in the HEYDUDE Brand from favorable channel mix toward DTC and favorable product mix, offset in part by unfavorable customer mix. Net unfavorable foreign currency fluctuations of $14.3 million, or 1.5%, primarily in the South
Current wording
During the six months ended June 30, 2025, revenues decreased compared to the same period in 2024, primarily due to lower volume. The overall decrease in HEYDUDE Brand revenues was partially offset by higher ASPs, driven by favorable channel mix, offset in part by unfavorable product mix and unfavorable customer mix.
Previous wording
Income from Operations. Income from operations for the HEYDUDE segment was $23.2 million for the three months ended March 31, 2025, a decrease of $16.9 million, or 42.1%, compared to 2024. Gross margin was 46.6%, an increase of 40 basis points.
Current wording
Income (Loss) from Operations. Loss from operations for the HEYDUDE segment was $705.9 million for the three months ended June 30, 2025, a decrease of $748.3 million, or 1,766.3%, compared to income from operations in the same period in 2024. Gross margin was 50.2%, an increase of 110 basis points, primarily due to distribution and logistics efficiencies.
Previous wording
SG&A for the HEYDUDE Brand segment increased $8.9 million, or 17.8%, during the three months ended March 31, 2025 compared to the same period in 2024. This increase was primarily due to higher costs in the DTC channel, including investments and variable costs, and increased investments in marketing. The overall increase in SG&A was partially offset by prior year impairment costs related to our former HEYDUDE Brand warehouses in Las Vegas, Nevada, which did not recur in the current year.
Current wording
SG&A, including asset impairments, for the HEYDUDE Brand segment increased $755.5 million, or 723.7%, during the six months ended June 30, 2025, compared to the same period in 2024. This is primarily due to the partial impairment of the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill, as discussed above, which was partially offset by prior year impairments costs of the right-of-use assets for our former HEYDUDE Brand warehouses in Las Vegas, Nevada that did not recur in the current year. SG&A also increased overall for the HEYDUDE Brand due to higher costs in the DTC channel, including investments and variable costs, and increased investments in marketing and talent.
Previous wording
During the three months ended March 31, 2025, total net costs within ‘Enterprise corporate’ decreased $3.9 million, or 5.0%, compared to the same period in 2024. This decrease was primarily due to a prior year impairment charge for information technology systems related to the HEYDUDE integration, which did not recur in the current year. The overall decrease was mostly offset by increased investment in talent, increased information technology costs, and net increases in other costs.
Current wording
During the six months ended June 30, 2025, total net costs within ‘Enterprise corporate’ increased $3.8 million, or 2.6%, compared to the same period in 2024. This was primarily due to an increased investment in talent and higher information technology costs, offset in part by a prior year non-cash impairment charge for information technology systems related to the HEYDUDE integration that did not recur in the current year.
Previous wording
As of March 31, 2025, we had 393 company-operated retail locations for the Crocs Brand, inclusive of 187 retail locations in North America and 206 retail locations internationally. As of March 31, 2025, we had 54 company-operated retail locations for the HEYDUDE Brand. As of March 31, 2024, we had 349 company-operated retail locations for the Crocs Brand, inclusive of 170 retail locations in North America and 179 retail locations internationally. As of March 31, 2024, we had 19 company-operated retail locations for the HEYDUDE Brand.
Current wording
As of June 30, 2025, we had 412 company-operated retail locations for the Crocs Brand, inclusive of 191 retail locations in North America and 221 retail locations internationally. As of June 30, 2025, we had 63 company-operated retail locations for the HEYDUDE Brand. As of June 30, 2024, we had 363 company-operated retail locations for the Crocs Brand, inclusive of 172 retail locations in North America and 191 retail locations internationally. As of June 30, 2024, we had 32 company-operated retail locations for the HEYDUDE Brand.
Previous wording
As of March 31, 2025, we had $166.5 million in cash and cash equivalents and up to $694.4 million of available borrowings, including $679.4 million of remaining borrowing availability under the Revolving Facility (as defined below) and $15.0 million of remaining borrowing availability under the Citibank Facility (as defined below). As of March 31, 2025, the Term Loan B Facility (as defined below) was fully drawn and there was no available borrowing capacity. We believe that cash flows from operations, our cash and cash equivalents on hand, and available borrowings under our Revolving Facility will be sufficient to meet our ongoing liquidity needs and capital expenditure requirements for at least the next twelve months.
Current wording
As of June 30, 2025, we had $200.6 million in cash and cash equivalents and up to $799.4 million of available borrowings, including $784.4 million of remaining borrowing availability under the Revolving Facility (as defined below) and $15.0 million of remaining borrowing availability under the Citibank Facility (as defined below). As of June 30, 2025, the Term Loan B Facility (as defined below) was fully drawn and there was no available borrowing capacity. We believe that cash flows from operations, our cash and cash equivalents on hand, and available borrowings under our Revolving Facility will be sufficient to meet our ongoing liquidity needs and capital expenditure requirements for at least the next twelve months.
Previous wording
All of the cash held outside of the U.S. could be repatriated to the U.S. as of March 31, 2025 without incurring additional U.S. federal income taxes. In some countries, repatriation of certain foreign balances is restricted by local laws. These limitations may affect our ability to fully utilize our cash resources for needs in the U.S. or other countries and could adversely affect our liquidity. As of March 31, 2025, we held $117.4 million of our total $166.5 million in cash in international locations. This cash is primarily used for the ongoing operations of the business in the locations in which the cash is held. Of the $117.4 million, an insignificant amount is currently restricted by local laws or otherwise.
Current wording
All of the cash held outside of the U.S. could be repatriated to the U.S. as of June 30, 2025, without incurring additional U.S. federal income taxes. In some countries, repatriation of certain foreign balances is restricted by local laws. These limitations may affect our ability to fully utilize our cash resources for needs in the U.S. or other countries and could adversely affect our liquidity. As of June 30, 2025, we held $176.7 million of our total $200.6 million in cash in international locations. This cash is primarily used for the ongoing operations of the business in the locations in which the cash is held. Of the $176.7 million, an insignificant amount is currently restricted by local laws or otherwise.
Previous wording
As of March 31, 2025, the total commitments available from the lenders under the Revolving Facility were $1.0 billion. At March 31, 2025, we had $320.0 million in outstanding borrowings and $0.6 million in outstanding letters of credit under the Revolving Facility, which reduces amounts available for borrowing under the Revolving Facility. As of March 31, 2025 and December 31, 2024, we had $679.4 million and $809.4 million, respectively, of available borrowing capacity under the Revolving Facility, which matures in November 2027.
Current wording
As of June 30, 2025, the total commitments available from the lenders under the Revolving Facility were $1.0 billion. At June 30, 2025, we had $215.0 million in outstanding borrowings and $0.6 million in outstanding letters of credit under the Revolving Facility, which reduces amounts available for borrowing under the Revolving Facility. As of June 30, 2025, and December 31, 2024, we had $784.4 million and $809.4 million, respectively, of available borrowing capacity under the Revolving Facility, which matures in November 2027.
Previous wording
During the three months ended March 31, 2025, we had one revolving credit facility in Asia with Citibank (China) Company Limited, Shanghai Branch (the “Citibank Facility”), which, as amended, provides up to an equivalent of $15.0 million.
Current wording
During the six months ended June 30, 2025, we had one revolving credit facility in Asia with Citibank (China) Company Limited, Shanghai Branch (the “Citibank Facility”), which, as amended, provides up to an equivalent of $15.0 million.
Previous wording
Operating Activities. Cash used in operating activities consists of net income adjusted for noncash items and changes in working capital. Cash used in operating activities increased $39.7 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, driven by lower net income, adjusted for non-cash items, of $7.7 million, and decreases in operating assets and liabilities of $32.0 million, primarily due to the change in inventories.
Current wording
Operating Activities. Cash provided by operating activities consists of net income (loss) adjusted for non-cash items and changes in working capital. Cash provided by operating activities decreased $155.1 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, driven by decreases in operating assets and liabilities of $175.1 million, primarily due to the change in income taxes, and lower net income (loss), adjusted for non-cash items, of $20.0 million.
Previous wording
Investing Activities. There was a $0.4 million decrease in cash used in investing activities for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. This was due to a decrease in purchases of property, equipment, and software.
Current wording
Investing Activities. There was a $0.9 million decrease in cash used in investing activities for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. This was due to a decrease in purchases of property, equipment, and software.
Previous wording
Financing Activities. Cash provided by financing activities increased by $11.0 million in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase in cash provided by financing activities was primarily due to an increase in proceeds from borrowings of $116.8 million. There was also a decrease of $2.6 million in repurchases of common stock for tax withholding and other increases in cash provided of $1.1 million. The overall increase in cash provided by financing activities was partially offset by an increase of $60.9 million in repurchases of common stock and an increase in repayments of borrowings of $48.6 million.
Current wording
Financing Activities. Cash used in financing activities decreased by $146.9 million in the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The decrease in cash used in financing activities was primarily due to an increase in proceeds from borrowings, net of repayments, of $163.2 million. There were other decreases in cash used of $2.8 million. The overall decrease in cash used in financing activities was partially offset by an increase of $19.1 million in repurchases of common stock, including excise tax.
Previous wording
For a complete discussion of our critical accounting policies and estimates, please refer to our Annual Report on Form 10-K for the year ended December 31, 2024 and Note 1 — Basis of Presentation and Summary of Significant Accounting Policies in the accompanying notes to the condensed consolidated financial statements included in Part I - Item 1. Financial Statementsof this Quarterly Report on Form 10-Q. There have been no other significant changes in our critical accounting policies or their application since December 31, 2024.
Current wording
For a complete discussion of our critical accounting policies and estimates, please refer to our Annual Report on Form 10-K for the year ended December 31, 2024, and Note 1 — Basis of Presentation and Summary of Significant Accounting Policies and Note 3 — Goodwill and Intangible Assets, Net in the accompanying notes to the condensed consolidated financial statements included in Part I - Item 1. Financial Statementsof this Quarterly Report on Form 10-Q. There have been no other significant changes in our critical accounting policies or their application since December 31, 2024, except as described above.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
During the six months ended June 30, 2025, we recognized realized and unrealized net foreign currency gains of $5.3 million compared to losses of $3.6 million during the six months ended June 30, 2024.