Crocs (CROX) risk factors, FY2025 10-K

Crocs's FY2025 10-K, filed Feb 12, 2026, lists 40 risk factors in 5 groups. Against the prior year's 40: 3 new, 3 dropped, 13 substantially reworded.

Risk factors listed
405 groups
New this year
3vs 40 last year
Dropped
3since the prior 10-K
Substantially reworded
13of those kept
Section length
18k wordsItem 1A

What the changes say

  • Crocs experienced major goodwill and trademark impairments for HEYDUDE, totaling $737 million in 2025.

What changed since the prior 10-K

New

  • NewRisks Related to International Operations

    Our future growth may be dependent in part on HEYDUDE

    The company relies on successful HEYDUDE brand performance, marketplace stabilization, and concentrated manufacturing in Vietnam and China.

  • NewRisks Related to International Operations

    There could be a material disruption to our business as a result of the actions of activist stockholders or others

    Activist stockholder campaigns or proxy contests could divert management attention and cause business disruption.

  • NewRisks Related to International Operations

    Our substantial indebtedness could adversely affect our business, financial condition, and results of operations, as well as the ability to meet payment obligations under our Revolving Credit Agreement, the Term Loan B Credit Agreement, and the Notes (as defined below)

    Total indebtedness reached $1,230.9 million as of December 31, 2025, reducing cash flow availability for operations.

Dropped

  • DroppedRisks Related to the Economy

    Changes in global economic conditions, including, but not limited to, those driven by inflation, may adversely affect consumer spending and the financial health of our customers and others with whom we do business, which may adversely affect our financial condition, results of operations, and cash resources

  • DroppedRisks Related to International Operations

    Our ability to realize the benefits from the Acquisition is substantially dependent on our ability to grow HEYDUDE

  • DroppedRisks Related to International Operations

    Moreover, HEYDUDE depends on a limited number of third-party manufacturers that are concentrated in China to produce its

Reworded

  • 88% rewrittenFinancial and Accounting Risks

    We may incur impairments of the carrying value of our goodwill and other intangible assets, which could have a material adverse effect on our business and financial results

    Disclosed specific 2025 non-cash impairment charges of $430.0 million for the HEYDUDE trademark and $307.0 million for reporting unit goodwill.

  • 84% rewrittenRisks Related to International Operations

    Successfully executing our long-term growth and profitability strategy will depend on many factors, including our ability to

    Minor phrasing updates regarding long-term growth and profitability strategy.

  • 81% rewrittenRisks Related to International Operations

    If our online e-commerce sites, or those of our customers, or third-party digital marketplaces on which we operate, do not function effectively, our business and financial results could be materially adversely affected

    Added specific e-commerce pressures regarding speed of delivery, shipping costs, and return policies.

    Was: If our online e-commerce sites, or those of our customers, do not function effectively, our business and financial results could be materially adversely affected

  • 69% rewrittenRisks Related to International Operations

    Government actions and regulations, such as export restrictions, tariffs, and other trade protection measures, could adversely affect our business

    Added that overseas products have been and continue to be impacted by trade policy changes.

  • 62% rewrittenRisks Related to International Operations

    We may be unable to successfully execute our long-term growth strategy, maintain or grow our current revenue and profit levels, or accurately forecast demand and supply for our products

    Removed the specific sentence regarding the HEYDUDE integration strategy from this risk.

  • 43% rewrittenRisks Related to Our Supply Chain

    Supply chain disruptions could interrupt product manufacturing and global logistics and increase product costs

    Updated past port congestion references to broader global logistics challenges.

  • 42% rewrittenRisks Related to International Operations

    Increasing scrutiny from investors, regulators, and other key stakeholders with respect to our environmental, social, and governance practices may impose additional costs on us or expose us to new or additional risks

    Minor updates regarding stakeholder ESG and CRS scrutiny.

  • 39% rewrittenRisks Related to Our Products

    We face significant competition

    Minor updates regarding footwear industry competition.

  • 35% rewrittenRisks Related to Our Supply Chain

    We depend solely on third-party manufacturers located outside of the U.S

  • 29% rewrittenRisks Related to International Operations

    Our financial results may be adversely affected if substantial investments in businesses and operations fail to produce expected returns

  • 27% rewrittenRisks Related to International Operations

    Despite our current level of indebtedness, we may be able to incur substantially more debt, which could increase the risks to our financial condition described above

  • 26% rewrittenRisks Related to Our Products

    Our success depends substantially on the value of our brands; failure to strengthen and preserve this value, either through our actions or those of our business partners, could have a negative impact on our financial results

  • 26% rewrittenRisks Related to International Operations

    We are subject to periodic litigation, which could result in unexpected expenditures of time and resources

All 40 risk factors

Headings as the filing states them, in filing order.

Risks Related to Our Products

  1. 01Our success depends substantially on the value of our brands; failure to strengthen and preserve this value, either through our actions or those of our business partners, could have a negative impact on our financial results26% rewritten
  2. 02We face significant competition39% rewritten
  3. 03Introducing new products may be difficult and expensive. If we are unable to do so successfully, our brands may be adversely affected, and we may not be able to maintain or grow our current revenue and profit levels
  4. 04Failure to adequately protect our trademarks and other intellectual property rights and counterfeiting of our brands could divert sales, damage our brands’ image, and adversely affect our business
  5. 05Failure to continue to obtain or maintain high-quality endorsers of our products and social media influencers could harm our business
  6. 06We rely on technical innovation to compete in the market for our products

Risks Related to the Economy

  1. 07Ongoing wars could cause further disruptions in the global economy as well as a negative impact on our business, financial condition, and results of operations
  2. 08A pandemic, epidemic, or other public health emergency has had an adverse impact, and may have a future material adverse impact, on our business, operations, liquidity, financial condition, and results of operations

Risks Related to Our Supply Chain

  1. 09Supply chain disruptions could interrupt product manufacturing and global logistics and increase product costs43% rewritten
  2. 10We depend solely on third-party manufacturers located outside of the U.S35% rewritten
  3. 11Our business could suffer if we need to replace either our third-party manufacturers or our distribution centers
  4. 12Our operations are dependent on the global supply chain and impacts of supply chain constraints and inflationary pressure could adversely impact our operating results
  5. 13If we do not accurately forecast consumer demand, we may have excess inventory to liquidate or have greater difficulty filling our customers’ orders, either of which could adversely affect our business
  6. 14Our third-party manufacturing operations must comply with labor, trade, and other laws. Failure to do so may adversely affect us
  7. 15We depend on a number of suppliers for key production materials, and any disruption in the supply of such materials could interrupt product manufacturing and increase product costs

Risks Related to International Operations

  1. 16Changes in foreign exchange rates, most significantly but not limited to the Euro, South Korean Won, and Chinese Yuan or other global currencies could have a material adverse effect on our business and financial results
  2. 17Government actions and regulations, such as export restrictions, tariffs, and other trade protection measures, could adversely affect our business69% rewritten
  3. 18We conduct significant business activity outside the U.S., which exposes us to risks of international commerce
  4. 19We may be unable to successfully execute our long-term growth strategy, maintain or grow our current revenue and profit levels, or accurately forecast demand and supply for our products62% rewritten
  5. 20Successfully executing our long-term growth and profitability strategy will depend on many factors, including our ability to84% rewritten
  6. 21Artificial intelligence presents risks and challenges that can impact our business including by posing security risks to our confidential information, proprietary information, and personal data
  7. 22If our online e-commerce sites, or those of our customers, or third-party digital marketplaces on which we operate, do not function effectively, our business and financial results could be materially adversely affected81% rewritten
  8. 23Our financial success depends in part on the strength of our relationships with, and the success of, our wholesale and distributor customers
  9. 24Operating company-operated retail stores incurs substantial fixed costs. If we are unable to generate sales, operate our retail stores profitably, or otherwise fail to meet expectations, we may be unable to reduce such fixed costs and avoid losses or negative cash flows
  10. 25Our financial results may be adversely affected if substantial investments in businesses and operations fail to produce expected returns29% rewritten
  11. 26We depend on employees across the globe, the loss of whom would harm our business
  12. 27Our future growth may be dependent in part on HEYDUDENew
  13. 28We are subject to periodic litigation, which could result in unexpected expenditures of time and resources26% rewritten
  14. 29Global climate change, including extreme weather conditions, natural disasters, public health issues, or other events outside of our control, as well as related regulations, could negatively impact our operating results and financial condition
  15. 30There could be a material disruption to our business as a result of the actions of activist stockholders or othersNew
  16. 31Our restated certificate of incorporation, amended and restated bylaws, and Delaware law contain provisions that could discourage a third-party from acquiring us and consequently decrease the market value of an investment in our stock
  17. 32Increasing scrutiny from investors, regulators, and other key stakeholders with respect to our environmental, social, and governance practices may impose additional costs on us or expose us to new or additional risks42% rewritten
  18. 33Our substantial indebtedness could adversely affect our business, financial condition, and results of operations, as well as the ability to meet payment obligations under our Revolving Credit Agreement, the Term Loan B Credit Agreement, and the Notes (as defined below)New
  19. 34Despite our current level of indebtedness, we may be able to incur substantially more debt, which could increase the risks to our financial condition described above27% rewritten

Financial and Accounting Risks

  1. 35We may be required to record impairments of long-lived assets or incur other charges relating to our company-operated retail operations
  2. 36We may incur impairments of the carrying value of our goodwill and other intangible assets, which could have a material adverse effect on our business and financial results88% rewritten
  3. 37Our quarterly revenues and operating results are subject to fluctuation as a result of a variety of factors, which could increase the volatility of the price of our common stock
  4. 38The risks of maintaining significant cash abroad could adversely affect our cash flows in the U.S., our business, and financial results
  5. 39Changes in tax laws and unanticipated tax liabilities and adverse outcomes from tax audits or tax litigation could adversely affect our effective income tax rate and profitability
  6. 40We may fail to meet analyst and investor expectations, which could cause the price of our stock to decline

Other Crocs 10-Ks

  • FY2024 10-K risk factors
    40 risks

    Crocs relies heavily on the success and brand value of its Crocs and HEYDUDE product lines.

    Filed Feb 13, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.