Crocs shares jumped 25.5% after earnings, as Q3 revenue grew 5% and management raised its full-year revenue growth outlook to approximately 3% from 1%–2%. Both brands grew, while adjusted operating margin expanded 150 basis points to 22.3%.
- Enterprise revenue exceeded $1 billion, up 5% year over year; Crocs brand revenue rose 4% and HEYDUDE rose 6%.
- Crocs growth was led by international revenue, which increased at a double-digit rate; international DTC grew 24%.
- HEYDUDE returned to growth, led by wholesale revenue up 14%; DTC revenue was up slightly.
- Adjusted operating margin reached 22.3%, expanding 150 basis points year over year.
- The company repurchased approximately 2 million shares for $250 million and paid down $21 million of debt.
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