American footwear manufacturer Crocs, Inc has reported better-than-expected results for the first quarter (Q1) of 2026, driven by strong direct-to-consumer (DTC) growth across both Crocs and HEYDUDE brands.

The company’s consolidated revenues stood at $921 million for the quarter ended March 31, 2026, down 1.7 per cent year on year (YoY), or 4 per cent on a constant currency basis. DTC revenues rose 12.1 per cent, while wholesale revenues declined 9.9 per cent. Gross margin fell to 56.8 per cent from 57.8 per cent, while operating income declined 9.9 per cent to $201 million. Diluted earnings per share (EPS) slipped to $2.71 from $2.83.

Crocs has reported better-than-expected Q1 2026 results, with revenue at $921 million, down 1.7 per cent, driven by 12.1 per cent DTC growth. Gross margin fell to 56.8 per cent, while EPS dipped to $2.71.
The Crocs brand grew modestly, but HEYDUDE declined.
CEO Andrew Rees highlighted strong consumer demand and raised FY26 guidance, projecting EPS of $13.20-13.75.

“We are pleased to have started the year with better-than-expected results, fuelled by broad consumer relevance for both of our brands and disciplined execution,” said Andrew Rees, chief executive officer (CEO) at Crocs. “We delivered enterprise revenue of over $900 million, supported by strong consumer response to product newness and consistent brand storytelling.”

The Crocs brand posted modest growth, with revenues up 0.8 per cent to $767 million, supported by a 12.9 per cent rise in DTC sales. International markets remained resilient, growing 7.2 per cent. However, North America revenues declined 6.1 per cent, Crocs said in a press release.

HEYDUDE revenues fell 12.3 per cent to $154 million, weighed down by a sharp 24.7 per cent drop in wholesale sales, although DTC revenues rose 8.6 per cent.

The company ended the quarter with $131 million in cash and reduced total borrowings to $1.34 billion.

Crocs lifts FY26 outlook; sees modest margin expansion

For full-year 2026, Crocs now expects revenues to range from down 1 per cent to up 1 per cent, with adjusted diluted earnings per share projected between $13.2 and $13.75. The company also anticipates modest expansion in adjusted operating margin.

For the second quarter, revenues are expected to decline slightly, with Crocs brand growth of 1–3 per cent and HEYDUDE projected to fall 12-14 per cent. Adjusted operating margin is forecast at around 24.7 per cent.

“Based on our first quarter performance, we are raising our full-year outlook on both the top- and bottom-line,” added Rees. “We remain confident in the long-term health of the business as we drive diversified growth across brands, channels and markets.”

Fibre2Fashion News Desk (SG)

Italy’s consumer price inflation accelerated sharply in April 2026, with the national index (NIC) rising 2.8 per cent year on year (YoY), up from 1.7 per cent in March, according to provisional estimates from Italian National Institute of Statistics (Istat). On a month-on-month (MoM) basis, prices increased 1.2 per cent.

The rise was largely driven by a rebound in energy costs. Prices of non-regulated energy products surged from a 2 per cent decline to a 9.9 per cent increase, while regulated energy prices rose 5.7 per cent after previously contracting, Istat said in a press release.

Italy’s inflation rose to 2.8 per cent YoY in April 2026 from 1.7 per cent in March, driven by a sharp rebound in energy prices, Istat said.
Monthly inflation stood at 1.2 per cent.
Goods inflation strengthened, while services inflation eased.
Transport costs increased notably.
The harmonised index (HICP) rose 2.9 per cent YoY, reflecting higher prices and seasonal factors.

In contrast, services inflation showed signs of moderation. Prices for recreation-related services eased to 2.6 per cent YoY, while transport services slowed sharply to 0.5 per cent. Overall services inflation decelerated to 2.4 per cent from 2.8 per cent in March.

Goods inflation, however, strengthened significantly, rising 3.2 per cent YoY compared with 0.8 per cent in the previous month. This narrowed the inflation gap between goods and services to -0.8 percentage points, down from +2 percentage points in March.

The monthly increase in the index was primarily led by higher prices for non-regulated energy (+5.7 per cent), transport services (+1.6 per cent), and recreation-related services (+1.4 per cent).

Among major consumption categories, water, electricity and fuels recorded a sharp 5.3 per cent annual increase, while transport prices rose 3.8 per cent.

Italy’s harmonised index of consumer prices (HICP), which allows comparison across the euro area, rose 2.9 per cent YoY in April, up from 1.6 per cent in March. On a monthly basis, HICP increased 1.7 per cent, partly reflecting the end of seasonal discounts in clothing and footwear.

Fibre2Fashion News Desk (SG)

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