Crocs (CROX) Stock Trades Up, Here Is Why

What Happened?

Shares of footwear company Crocs (NASDAQ:CROX) jumped 20.3% in the morning session after the company reported better-than-expected fourth-quarter results and issued a strong earnings outlook for 2026. 

For the quarter, the footwear maker posted revenue of $957.6 million and adjusted earnings of $2.29 per share, with both figures comfortably surpassing Wall Street's expectations. The main driver for the stock's jump, however, was the company's financial forecast. Crocs guided for adjusted earnings per share in 2026 to be in the range of $12.88 to $13.35, which was significantly above what analysts had modeled. This upbeat outlook suggested confidence in the company's future performance, overshadowing a year-on-year revenue decline and soft revenue guidance for the upcoming quarter.

Is now the time to buy Crocs?

What Is The Market Telling Us

Crocs’s shares are quite volatile and have had 19 moves greater than 5% over the last year. But moves this big are rare even for Crocs and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 12 months ago when the stock gained 21% on the news that the company delivered solid fourth-quarter 2024 results, surpassing analysts' revenue, EPS, and EBITDA estimates. Revenue increased by 3.1%, led by a 4% rise in the core Crocs brand, while HEYDUDE sales remained flat. Strength in direct-to-consumer sales, particularly in China and North America also helped offset weaker wholesale performance. Guidance for the next quarter was underwhelming, with projected revenue expected to decline by 3.5%, weighed down by softness in HEYDUDE sales. However, full-year EPS guidance exceeded expectations, offering some reassurance to investors. Overall, this quarter wasn't perfect, but it was quite solid.

Crocs is up 16.3% since the beginning of the year, but at $101.15 per share, it is still trading 15.9% below its 52-week high of $120.26 from May 2025. Investors who bought $1,000 worth of Crocs’s shares 5 years ago would now be looking at an investment worth $1,238.

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