Shares of Crocs Inc. (NASDAQ:CROX) climbed about 20% after the footwear maker released fourth-quarter results that topped estimates and issued a 2026 earnings outlook that surpassed analyst projections.
Guidance and consensus comparison
The company set 2026 adjusted earnings per share guidance in a range of $12.88 to $13.35, well above the $11.89 per-share consensus compiled by LSEG. For full-year 2026 revenue, management expects a range spanning a 1% decline to a marginal increase, versus analysts' projection for a 0.8% decline.
Quarterly performance and demand drivers
Crocs exceeded Wall Street expectations for both fourth-quarter sales and profits, a result the company attributed to strong holiday-season demand for its core styles within international direct-to-consumer channels. The company's primary brand and its HEYDUDE division both helped drive revenue higher than anticipated.
Cost savings and margin outlook
Chief Executive Andrew Rees said the firm will pursue $100 million in cost savings by 2026. In addition, management signaled that adjusted operating margin should "expand modestly" from the 22.3% reported in fiscal 2025.
Analyst perspective and valuation
Stifel highlighted the valuation implications of the guidance: "Valuation remains intriguing, with the pre-market price pointing to 7x P/E on FY26E adj. EPS guidance. Our $90 target price and Hold thesis presumes a level of tension between promotional intensity and revenue growth, and we will update our estimates after the call," Stifel wrote.
Based on the company's guidance, the current share price implies roughly 7 times projected 2026 earnings.
Market reaction
Investors reacted to the combination of a stronger-than-expected EPS outlook, cost-saving initiatives and a positive holiday-season sales cadence by bidding the stock materially higher in trading following the release.