Crocs Reports Q2 2025 Revenue Growth to $1.149 Billion, Faces $492.3 Million Net Loss

Crocs, Inc. reported its financial results for the second quarter of 2025, revealing revenues of $1.149 billion, a 3.4% increase from $1.112 billion in the same period last year. The growth was primarily driven by a 5.0% increase in revenues from the Crocs Brand, which reached $959.6 million, while the HEYDUDE Brand saw a decline of 3.9%, generating $189.8 million. The company's gross profit for the quarter was $708.8 million, resulting in a gross margin of 61.7%, up from 61.4% in the prior year, attributed to reduced discounting in the Crocs Brand.

Despite the revenue growth, Crocs reported a significant net loss of $492.3 million, or $(8.82) per diluted share, compared to a net income of $228.9 million, or $3.77 per diluted share, in the second quarter of 2024. This loss was largely due to asset impairments totaling $738.1 million, primarily related to the HEYDUDE Brand's indefinite-lived trademark and goodwill. The impairments were prompted by downward revisions in the internal forecast for the HEYDUDE Brand, reflecting challenges in stabilizing the brand amid a weak U.S. consumer environment and the impact of tariffs on imported goods.

Operationally, Crocs experienced a decrease in selling, general, and administrative expenses (SG&A), which rose to $398.2 million from $356.2 million in the previous year, driven by increased marketing investments and higher costs in the direct-to-consumer channel. The company also reported a decrease in cash provided by operating activities, which fell to $218.6 million for the first half of 2025, down from $373.7 million in the same period last year. This decline was attributed to changes in operating assets and liabilities, particularly in income taxes.

As of June 30, 2025, Crocs had total assets of $4.451 billion, down from $4.812 billion at the end of 2024, with cash and cash equivalents amounting to $200.6 million. The company also reported total borrowings of $1.4 billion, with $215 million drawn from its revolving credit facility. Crocs continues to maintain a strong liquidity position, with $799.4 million available for borrowing. Looking ahead, the company anticipates ongoing challenges due to economic conditions, including inflation and tariffs, but remains focused on stabilizing the HEYDUDE Brand and leveraging growth in the Crocs Brand.