Crocs Inc. (NASDAQ:CROX) stock surged Thursday after the footwear company reported better-than-expected third-quarter 2026 results and raised its full-year outlook for the third time.

The company reported adjusted earnings of $3.69 per share, beating analysts’ consensus estimate of $3.30.

Revenue increased 4.6% year over year to $1.04 billion, topping Wall Street’s estimate of $1 billion.

Adjusted gross margin expanded 180 basis points to 60.3%.

International Growth Drives Sales

Direct-to-consumer revenue rose 6.9% to $601 million, while wholesale revenue increased 1.8% to $441 million.

Crocs brand revenue grew 4.4% to $873 million, driven by international expansion.

North American revenue declined 2.1% to $438 million, while international revenue jumped 11.8% to $434 million.

International direct-to-consumer sales surged 24%, supported by growth in China, India, Japan, South Korea and Western Europe.

HEYDUDE revenue increased 6.1% to $170 million, benefiting from higher average selling prices, inventory management and cost efficiencies. Management said HEYDUDE had progressed from double-digit sales declines to positive growth, marking a significant turnaround for the struggling footwear brand.

CEO Andrew Rees attributed the Crocs brand’s growth to international expansion and product diversification.

Management highlighted product innovation, digital marketing and international expansion, alongside plans to leverage artificial intelligence and social commerce.

Share Buybacks and Balance Sheet

Crocs repurchased approximately 2 million shares for $250 million during the quarter, leaving $1.7 billion available under its buyback authorization.

As of Sept. 30, cash totaled $163 million, inventories stood at $413 million and borrowings reached $1.29 billion.

The company repaid $21 million in debt during the quarter.

Crocs Raises Full-Year Forecast

Crocs raised its fiscal 2026 adjusted earnings forecast to $14.45-$14.65 per share, up from $13.70-$14, exceeding analysts’ estimate of $13.96.

The company increased its revenue forecast to approximately $4.16 billion from its previous range of $4.08 billion to $4.12 billion. Wall Street expects $4.10 billion.

For the fourth quarter, Crocs forecast adjusted earnings of $3.25-$3.45 per share, above the $3.10 estimate.

Revenue is expected to range from $1.03 billion to $1.04 billion, compared with analysts’ estimate of $994.47 million.

Management also expects adjusted operating margin to improve modestly from 22.5% and anticipates a $40 million full-year non-GAAP net benefit, primarily from tariff refunds and cost reductions.

CROX Price Action: Crocs shares were up 25.64% at $150.38 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to market data.