Grade History
| Quarter | Disclosure Quality | Financial Quality |
|---|---|---|
| Q1'25 → | C+ | B |
| Q2'25 → | B | B+ |
| Q3'25 → | C+ | C |
| Q4'25 → | B+ | B+ |
| Q1'26 → | B+ | B |
Promise Ledger · All Quarters
| Marked | Promise | Status | |
|---|---|---|---|
| Q1'26 | ✅ | Inventory units down high single digits Maintained discipline with inventory units down high single digits in Q1 | delivered |
| Q1'26 | ⏳ | $100M cost savings program implementation Still in progress, benefits flowing but full deployment not yet complete | pending |
| Q1'26 | ✅ | HEYDUDE revenue down 7% to 9% for year Improved guidance to down 5% to 7% based on Q1 outperformance | exceeded |
| Q1'26 | ✅ | Enterprise revenue flat to up 2% for 2026 Raised guidance to up 1% to down 1%, better than previous range | exceeded |
| Q1'26 | ⏳ | International Crocs growth approximately 10% Q1 came in at 7% reported, guidance softened to 'high single digits to approaching 10%' | pending |
| Q1'26 | ✅ | Adjusted operating margin expand modestly from 22.3% in 2025 Q1 operating margin 22.3%, guidance maintained for modest expansion | delivered |
| Q1'26 | ⏳ | Return both brands to growth in back half of 2026 Reiterated for HEYDUDE, Crocs North America still being managed carefully | pending |
| Q4'25 | ✅ | Manage inventory tightly Units down high single digits despite dollar increase from tariffs, turns above 4x target | delivered |
| Q4'25 | ⏳ | Return Crocs North America to growth Still down low double digits in Q4, now positioned as 2026+ objective rather than near-term | pending |
| Q4'25 | ✅ | $50M cost savings program to benefit 2025 Management confirmed program executed and contributed to Q4 SG&A improvement | delivered |
| Q4'25 | ✅ | International wholesale timing shifts to improve in Q4 International wholesale up 5% in Q4 vs down 7% in Q3 as communicated | delivered |
| Q4'25 | ❌ | Majority of HeyDude cleanup to be done during 2025 Management now says cleanup continues into 2026 with 'continued markdown support in Q4' and beyond | missed |
| Q3'25 | ✅ | Continue share buybacks and debt paydown $203M buybacks and $63M debt paydown, though less deleveraging than Q2 | delivered |
| Q3'25 | ✅ | Maintain inventory turns above 4x Enterprise inventory turns above 4x goal on annualized basis | delivered |
| Q3'25 | ❌ | International growth momentum to continue Decelerated from 16% to 4% despite China still growing mid-20% | missed |
| Q3'25 | ✅ | HEYDUDE wholesale cleanup to improve inventory health Accelerated returns and markdowns in Q3, sell-in now aligned with inventory levels | exceeded |
| Q3'25 | ✅ | $50M cost savings already actioned for 2025 Confirmed savings flowing through Q3 and Q4, balanced across SG&A and gross margin | delivered |
| Q3'25 | ✅ | Reduce receipts into wholesale channel to match supply and demand Inventory units down despite dollar growth from tariffs | delivered |
| Q3'25 | ✅ | Pull back on promotional activity to protect brand health Continued digital discount pullback in Q3, drove gross profit dollars higher despite revenue impact | delivered |
| Q2'25 | ❌ | April trends were strong and we felt good about trajectory Q3 guidance implies significant deterioration from April strength | missed |
| Q2'25 | ✅ | Would continue opportunistic share buybacks within leverage range Repurchased $133M in Q2, up from $61M in Q1 | delivered |
| Q2'25 | ✅ | International growth would be mid-teens for Crocs Delivered 16% international growth, ahead of mid-teens expectation | exceeded |
| Q2'25 | ❌ | We expected HEYDUDE to continue improving from Q4 trajectory HEYDUDE revenue declined more than expected, took impairment, and guidance implies significant Q3 deterioration | missed |
| Q2'25 | ⏳ | We could shift China sourcing within 6 months for Crocs, 12 months for HEYDUDE No update provided on sourcing shift progress or timeline | pending |
| Q2'25 | ✅ | We would maintain marketing investment levels despite uncertainty Maintained marketing spend net of $50M cost savings, though pulled back performance marketing for HEYDUDE | delivered |
| Q1'25 | ✅ | Capital allocation unchanged - debt paydown and opportunistic buybacks $61M repurchases in Q1, stayed within 1-1.5x leverage target | delivered |
| Q1'25 | ✅ | 10 additional HEYDUDE premium outlet stores in 2025 Confirmed in Q1 call, on track with plan | delivered |
| Q1'25 | ⏳ | Adjusted operating margin approximately 24% for full year Q1 delivered 23.8% but guidance withdrawn, commitment maintained 'at or above 24%' | pending |
| Q1'25 | ✅ | Crocs international growth up approximately 10% Q1 international up 12%, China accelerated to 30%+ from 25% | exceeded |
| Q1'25 | ✅ | HEYDUDE DTC growth from improving digital trends 8% growth accelerated from 7% in Q4, though muted in communication | delivered |
| Q1'25 | ❌ | Enterprise revenue growth up 3.5-4% constant currency 2025 Withdrew all guidance claiming tariff uncertainty despite having modeled scenarios | missed |
| Q1'25 | ❌ | Mid-teens SG&A growth first half, low-single-digit second half Instead implemented $50M emergency cost cuts - complete reversal of investment plan | missed |
Get the next CROX call sheet the day it drops.
Subscribe to Call Sheet Daily →