Crocs Posts Record Gross Profit but Slashes Outlook on Tariff Fears

Crocs delivered a mixed bag in Q2 2025—record profitability but a sobering forecast. Revenue rose 3.4% year-on-year to $1.15 billion, with the Crocs brand itself climbing 5% to $960 million. Heydude, however, slumped nearly 4%, reflecting the brand's ongoing integration challenges. Gross margin ticked up to 61.7%, the highest in company history. But impairment charges from Heydude weighed heavily, turning operating income of $326 million a year ago into a $428 million operating loss this quarter. Non-cash write-downs of $737 million related to Heydude's trademark and goodwill were the main culprits. Adjusted results were healthier: $309 million in operating income and diluted EPS of $4.23, a 5.5% increase.

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CEO Andrew Rees struck a cautious note. "The operating environment is uncertain," he said, citing macro headwinds and looming tariffs. Crocs has implemented $