Crocs' Q4 Earnings on The Horizon: What's There to Unfold?

Crocs, Inc. CROX is scheduled to release fourth-quarter 2025 results on Feb. 12, before market open. The Zacks Consensus Estimate for revenues is pegged at $916.6 million, indicating a drop of 7.4% from the prior-year figure.

The consensus estimate for earnings per share has been stable in the past 30 days at $1.91. The estimate indicates a decline of 24.2% from the year-ago period’s number. 

The Broomfield, CO-based company has a trailing four-quarter earnings surprise of 14.3%, on average. In the last reported quarter, its bottom line surpassed the Zacks Consensus Estimate by 22.2%.

Key Factors to Note Ahead of CROX’s Results

Crocs’ quarterly results are likely to be hurt by a tough operating backdrop. CROX’s margins have been pressured by a combination of increased expenses and other dynamics. Tariff-related woes have been acting as deterrents. The company has been struggling with higher selling, general and administrative (SG&A) expenses for a while. Such limitations are likely to have contributed to reduced sales and profitability in the to-be-reported quarter.

Crocs has been witnessing soft trends in its HEYDUDE brand for a while now, with a cautious consumer backdrop, elevated tariffs and wholesale channel pressures. The brand is navigating a prolonged reset in North America, marked by incremental inventory returns, wholesale cleanups and a pullback in performance marketing to improve profitability. The Zacks Consensus Estimate for the HEYDUDE brand’s revenues is pegged at $175 million for the quarter under review, indicating a decline of about 23% year over year. 

Management, in its last earnings call, had projected fourth-quarter revenues to decline roughly 8% year over year at currency rates as of Oct. 27, 2025. It had anticipated revenues at the Crocs brand to drop approximately 3% compared with the fourth quarter of 2024, while HEYDUDE brand revenues are projected to be down mid-20%. The company expected non-GAAP adjustments of $10 million with respect to cost-reduction initiatives. Adjusted operating margin was forecast to be approximately 15.5% for the fourth quarter of 2025.

Nevertheless, strength in CROX’s core brands and effective pricing strategies are likely to have been tailwinds. The company has been seeing strength in clogs, sandals and personalization for a while now. Its Jibbitz business has also been encouraging. These, coupled with its direct-to-consumer (DTC) channel, are likely to have offered some cushion to the company’s quarterly performance.

What Our Model Unveils for Crocs

Our proven model does not conclusively predict an earnings beat for Crocs this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Crocs currently has an Earnings ESP of -0.44% and a Zacks Rank #4 (Sell).

CROX’s Valuation Picture

From a valuation perspective, Crocs offers an attractive opportunity, trading at a discount relative to the historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 6.83x, which is below the five-year high of 25.08x and the Textile - Apparel industry’s average of 16.16x, the stock offers compelling value for investors seeking exposure to the sector.

The recent market movements show that Crocs’ shares have gained 12.1% in the past six months against the industry's 2.7% drop.

Stocks Poised to Beat Earnings Estimates

Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:

Carter's, Inc. CRI currently has an Earnings ESP of +3.93% and sports a Zacks Rank of 1. CRI is likely to register top-line growth when it reports fourth-quarter 2025 results. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for its quarterly revenues is pegged at $866.8 billion, indicating a 0.8% rise from the figure reported in the year-ago quarter. The consensus estimate for CRI’s fourth-quarter earnings is pegged at $1.66 per share, implying a 30.5% decrease from the year-ago quarter’s actual. CRI has a negative trailing four-quarter average earnings surprise of 0.5%.

Hasbro, Inc. HAS currently has an Earnings ESP of +16.50% and a Zacks Rank of 3. HAS is likely to register top and bottom-line increase when it reports fourth-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.3 billion, indicating a 16.9% rise from the figure reported in the year-ago quarter.  

The consensus estimate for Hasbro’s fourth-quarter earnings is pegged at 99 cents a share, implying a 115.2% increase from the year-earlier quarter. The consensus mark has moved down a penny in the past 30 days. HAS delivered a trailing four-quarter average earnings surprise of 36%.

lululemon athletica LULU currently has an Earnings ESP of +0.58% and a Zacks Rank of 3. LULU is likely to register a top-line decrease when it reports fourth-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.6 billion, indicating 0.2% drop from the figure reported in the year-ago quarter. 

The consensus estimate for LULU’s fourth-quarter earnings is pegged at $4.74 a share, implying a 22.8% decrease from the year-earlier quarter. LULU has a trailing four-quarter average earnings surprise of 7.8%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research