American footwear company Crocs Inc has reported consolidated revenues of $4.04 billion in the full-year 2025 ended December 31, down 1.5 per cent year on year (YoY), or 1.7 per cent on a constant currency basis. Direct-to-consumer (DTC) revenues grew 3.3 per cent, while wholesale revenues declined 6.2 per cent, reflecting channel rebalancing and softer wholesale demand.

The gross margin stood at 58.3 per cent, marginally lower than 58.8 per cent in 2024. Selling, general and administrative (SG&A) expenses rose sharply to $2,208 million, largely due to non-cash impairment charges related to the Heydude brand, including $430 million tied to the trademark and $307 million to goodwill. On an adjusted basis, SG&A increased a more moderate 6.8 per cent to $1,456 million.

Crocs Inc has reported full-year 2025 revenue of $4.04 billion, down 1.5 per cent, as wholesale weakness offset DTC growth.
Impairment charges linked to Heydude hit reported profit, though adjusted operating income remained strong.
The Crocs brand grew internationally, while Heydude declined.
Strong cash flow supported debt reduction and share buybacks.
The company expects modest revenue trends in 2026.

Reported operating income fell 85.4 per cent to $150 million, resulting in an operating margin of 3.7 per cent. Excluding impairments, adjusted operating income reached $901 million, with an adjusted operating margin of 22.3 per cent. Crocs posted a diluted loss per share of $1.50 for the year, compared to earnings per share (EPS) of $15.88 in 2024. Adjusted diluted EPS declined 5.0 per cent to $12.51, Crocs said in a press release.

For the full year, the Crocs brand grew revenues 1.5 per cent to $3,326 million, supported by an 11.9 per cent rise in international sales. Heydude revenues declined 13.3 per cent to $715 million, reflecting continued pressure in wholesale channels.

Strong cash generation remained a highlight. Operating cash flow reached approximately $700 million, enabling the company to repay $128 million of debt and repurchase around 6.5 million shares for $577 million during the year.

As of December 31, 2025, cash and cash equivalents stood at $130 million, inventories at $369 million, and total borrowings declined to $1,231 million. Capital expenditure for the year was $51 million.

Commenting on the annual performance, Andrew Rees, chief executive officer of Crocs, said: “We ended 2025 on a strong note with a better-than-expected Holiday quarter. For the year, revenue exceeded $4 billion, led by low-double digit international growth for the Crocs Brand. At the same time, we accelerated our strategic actions to strengthen the long-term health of both the Crocs and Heydude brands.”

“Our powerful value creation model drove operating cash flow of approximately $700 million which enabled us to return shareholder value as we repurchased approximately 10 per cent of our shares outstanding and paid down $128 million of debt,” added Rees.

For the fourth quarter (Q4) of 2025, consolidated revenues declined 3.2 per cent to $958 million, or 4.2 per cent on a constant currency basis. DTC revenues increased 4.7 per cent, while wholesale revenues dropped 14.5 per cent.

The gross margin declined to 54.7 per cent from 57.9 per cent a year earlier. SG&A expenses rose slightly to $377 million, representing 39.4 per cent of revenues, while adjusted SG&A declined 2.7 per cent to $363 million.

Income from operations decreased 26.8 per cent to $146 million, with operating margin narrowing to 15.3 per cent. On an adjusted basis, operating income reached $161 million, translating into an adjusted operating margin of 16.8 per cent. Diluted EPS fell sharply to $2.03, while adjusted diluted EPS declined 9.1 per cent to $2.29.

In Q4, the Crocs brand delivered revenues of $768 million, up 0.8 per cent YoY. DTC revenues increased 6.1 per cent, while wholesale revenues declined 6.7 per cent. International markets remained a key growth driver, with revenues rising 14.1 per cent, offsetting a 7.4 per cent decline in North America.

Heydude brand revenues fell 16.9 per cent to $189 million in the quarter, with wholesale revenues declining over 40 per cent, while DTC revenues remained flat.

During the quarter, Crocs repurchased approximately 2.2 million shares for $180 million and repaid $90 million of debt.

Looking ahead, Crocs expects a challenging start to 2026 but sees improving efficiency and disciplined investment supporting earnings growth. For the first quarter of 2026, revenues are expected to decline between 5.5 per cent and 3.5 per cent YoY, with adjusted operating margin of around 21.5 per cent and adjusted diluted EPS between $2.67 and $2.77.

For full-year 2026, the company expects revenues to range from down 1 per cent to slightly higher than 2025. The Crocs brand is projected to be flat to up 2 per cent, while Heydude revenues are expected to decline between 9 per cent and 7 per cent. Adjusted diluted EPS are forecast in the range of $12.88 to $13.35.

“We enter 2026 with greater confidence around our growth engines which are diversified across channels, geographies, brands, and product categories. We have identified and actioned $100 million of cost savings in 2026 aimed at driving greater efficiency while providing the flexibility to continue to invest behind our brands and deepen our connection with consumers,” said Rees.

Fibre2Fashion News Desk (SG)

Germany’s wholesale selling prices increased 1.2 per cent year on year in January 2026, according to the latest data released by the Federal Statistical Office (Destatis).

The annual rate matched the 1.2 per cent rise recorded in December 2025, though it was slightly below the 1.5 per cent increase seen in November.

Germany’s wholesale selling prices rose 1.2 per cent year on year in January 2026, matching December’s rate but easing from 1.5 per cent in November, according to Destatis.
On a month-on-month basis, prices increased 0.9 per cent from December, indicating firmer momentum at the start of the year and a continuation of moderate wholesale inflation trends.

On a month-on-month basis, wholesale prices climbed 0.9 per cent in January compared with December 2025, signalling renewed upward momentum at the start of the year, Destatis said in a press release.

Fibre2Fashion News Desk (SG)

German footwear manufacturer Birkenstock Holding plc has reported strong financial results for the first quarter (Q1) of fiscal 2026 (FY26) ended December 31, 2025, supported by robust holiday demand across regions, channels and product categories. The company generated revenue of €402 million (~$478.4 million), an increase of 11.1 per cent year on year (YoY) on a reported basis and increased 17.8 per cent in constant currency, exceeding the company’s full-year constant currency growth outlook of 13-15 per cent.

Regional performance remained broad-based, with double-digit constant currency growth across all segments. In the Americas, revenue increased 5 per cent on a reported basis and 14 per cent in constant currency, led by business to business (B2B) expansion and improved sell-through at key wholesale partners, including youth-focused and sports specialty retailers. The company operated 15 own retail stores in the region after opening one new store during the quarter.

Birkenstock has reported revenue of €402 million (~$478.4 million) in Q1 FY26, up 11.1 per cent YoY and 17.8 per cent in constant currency, exceeding guidance.
Growth was broad-based across regions and channels, led by strong holiday demand.
Net profit surged 151 per cent to €51 million (~$60.5 million).
The company reaffirmed its three-year growth and profitability targets.

Europe, the Middle East and Africa (EMEA) posted revenue growth of 16 per cent on a reported basis and 17 per cent in constant currency, again led by the B2B channel. Three new own retail stores were added, taking the regional total to 45 stores by quarter-end, Birkenstock said in a press release.

Asia-Pacific (APAC) delivered the strongest performance, with revenue rising 28 per cent on a reported basis and 37 per cent in constant currency. Direct-to-consumer (DTC) growth outpaced B2B by more than two times in the region, supported by strength in both online and physical retail. Five new stores were opened, bringing the APAC store count to 46.

By channel, B2B revenue grew 18 per cent on a reported basis and 24 per cent in constant currency, primarily driven by growth within existing doors through expanded assortments and strong full-price sell-through. DTC revenue increased 4 per cent on a reported basis and 12 per cent in constant currency. During the quarter, Birkenstock added nine new own retail stores globally, bringing the total to 106 as of December 31, 2025.

Profitability metrics reflected both operational strength and external cost pressures. Gross profit margin declined 460 basis points to 55.7 per cent from 60.3 per cent in the prior-year period. The decrease was mainly attributable to unfavourable currency translation (220 basis points), incremental US tariffs (130 basis points), channel mix and a 170 basis points (bps) impact from the mark-up to cost of sales linked to the acquisition of Birkenstock Australia Pty Ltd, completed on October 23, 2025. These pressures were partly offset by sales price adjustments net of inflation and improved capacity absorption.

Adjusted gross profit margin stood at 57.4 per cent, down 290 basis points YoY, reflecting similar currency and tariff headwinds, partially mitigated by pricing actions and operational efficiencies.

Net profit surged 151 per cent YoY to €51 million (~$60.5 million), while earnings per share (EPS) increased 157 per cent to €0.27. Adjusted net profit rose 47 per cent and adjusted EPS climbed 50 per cent YoY.

Adjusted EBITDA grew 4 per cent to €106 million, with an adjusted EBITDA margin of 26.5 per cent, down 170 basis points from 28.2 per cent in the prior-year quarter. The margin contraction was largely due to currency effects (230 basis points) and incremental US tariffs (130 basis points), partly offset by pricing measures and better production absorption.

To support sustained demand, Birkenstock continued to invest in production capacity, spending approximately €38 million in capital expenditure during the quarter. This included around €18 million for the acquisition of a new site in Wittichenau.

The company ended the quarter with cash and cash equivalents of €229 million. Net leverage stood at 1.7x as of December 31, 2025, compared with 1.5x on September 30, 2025, reflecting typical seasonal cash patterns.

Oliver Reichert, CEO and member of the board of directors of the company, said: “Our results for the first quarter of fiscal 2026 show the continued strong demand for our brand throughout the important holiday season. As we discussed during our Capital Markets Day in New York on January 28^th, we believe we are a one-of-a-kind purpose-driven brand with a huge runway for growth ahead.  Our unique business model is designed for resilience. We presented our three-year plan which calls for 13-15 per cent revenue growth in constant currency and 30 per cent EBITDA margin. Our vertically integrated supply chain means we are capacity constrained by design. We will steer our business by geography, channel and product to maximise profit per pair and maintain strong brand equity.”

Fibre2Fashion News Desk (SG)