Comfort is apparently still king. At least that's what consumers of footwear maker Crocs (CROX +0.61%) are showing. The company crushed fourth-quarter earnings estimates, and the stock rocketed 22% higher at the start of trading.
Crocs shares were still 19.4% higher as of 10:35 a.m. ET.
Image source: Getty Images.
Cash flow is king
While revenue dropped in 2025, solid cash flow helped the company and shareholders. Crocs reduced its share count by 10% for the year while also paying down $128 million in debt. Today's share price gains make those buybacks look prudent, too. Crocs repurchased $180 million in shares at an average price of $83.63 in the fourth quarter.
The company beat analyst estimates for both earnings and revenue in the quarter. Investors are also reacting positively to forward guidance. Management provided impressive guidance for 2026. The expectation for adjusted earnings per share of $12.88 to $13.55 is well above the $11.89 per share that analysts expected.
NASDAQ: CROX
Key Data Points
There might be some upside to that guidance, too, since it doesn't include the impact of any potential share repurchases. As of Dec. 31, the company still had about $750 million of share repurchase authorization remaining.
Investors are rewarding the company today for a strong end to the year and an optimistic view for 2026.
