Will Crocs’ (CROX) Share Buybacks Shield Its Long-Term Story Amid Weak Q2 Results?

• In August 2025, Crocs, Inc. reported second-quarter earnings that included sales of US$1,149.37 million but a net loss of US$492.28 million, and provided guidance for a 9% to 11% revenue decrease in the third quarter compared to the previous year.
• Alongside ongoing share repurchases totaling over US$2.58 billion since 2013, Crocs faced a significant swing to quarterly losses and signaled softer demand ahead.
• We'll now examine how Crocs' weaker third quarter revenue outlook impacts its previously optimistic long-term investment narrative.

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Crocs Investment Narrative Recap

To be a Crocs shareholder today, you need to believe in the company’s ability to reignite demand and stabilize long-term earnings, particularly as international growth offsets pressures at home. The sharp Q2 2025 loss, coupled with guidance for a 9% to 11% revenue drop in Q3, poses a real challenge to the near-term recovery narrative and amplifies the short-term risk of softening consumer demand in core markets; the impact is therefore material for the most immediate catalyst.

The company’s ongoing share buyback remains highly relevant: Crocs repurchased over US$133 million in shares this past quarter, signaling confidence in its long-term prospects and returning capital to shareholders, even as it moves through operational and industry headwinds. In context of heightened revenue risk, this approach stands out, as the focus on capital allocation efficiency could influence investor sentiment or cushion longer-term downside.

By contrast, one risk investors should be aware of is how persistent competitive pressures and shifting consumer preferences in North America could force deeper markdowns if...

Read the full narrative on Crocs (it's free!)

Crocs' outlook projects $4.0 billion in revenue and $925.2 million in earnings by 2028. This implies a 1.0% annual revenue decline and an earnings increase of $688.7 million from current earnings of $236.5 million.

Uncover how Crocs' forecasts yield a $90.92 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Fair value estimates from 18 Simply Wall St Community members range widely from US$90.92 to US$235.67 per share. With Crocs’ near-term revenue outlook now under pressure, these varied opinions reflect just how differently you might view the company’s future after accounting for challenges in its largest market.

Explore 18 other fair value estimates on Crocs - why the stock might be worth over 2x more than the current price!

Build Your Own Crocs Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Crocs research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Crocs research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Crocs' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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