Crocs are cool again. But the return of the history of a footwear company is more than just a fashionable statement.
The iconic clogging was the basis of fashion from the beginning of 2000. However, the brand's profitability eroded in the years after a great recession, when she fought for development on the international arena. According to data from Factet in the years 2008–2016, four years passed, in which the company's operational margin was negative.
CROCS CEO Andrew Rees took Ster Crocs in 2017 and managed the phrase strategy.
“When I joined the company, we refreshed the management team, refreshed the strategy, and it was really about achieving profitability. But by putting the appropriate level of marketing and product innovation in the product so that we could create an incremental demand,” said Rees.
Crocs collaborated with brands, from Balenciaga to Pixar and stars such as Justin Bieber and Post Malone to create a limited edition editions. Pandemia also created a demand for comfortable footwear among consumers who got stuck at home with first -line professionals.
In the years 2020–2021 the brand increased by revenues from around $ 1.4 billion to around $ 2.3 billion. Profitability also increased because the Crocs operating margin jumped from 17.2% to 29.8% in the same period, according to the data from Factet.
As for the brand, Crocs moved their messages and began to take criticism around his colorful and unique appearance.
“They returned to their original plug and basically used it as a canvas to express themselves“ – said Annie Wilson, a senior marketing lecturer at Wharton School. “The most important thing I saw from the point of view of the message was their transition from the attempt to convince consumers that it is about comfort and function, basically saying:” Yes, we know that we are ugly, but that's why you should love us because it makes us one of a kind and unique. “
Crocs leaned strongly into personalization thanks to the decorative charms called Jibbitz. The company said CNBC that Jibbitz's revenues amounted to USD 271 million in 2024, which is just over 8% of the brand's revenues.
“They are very profitable, but the most important part is not only the direct contribution of profit, but simply engaging with this consumer to really restore it to the brand,” said Anne Mehlman, president of the Crocs brand.
Crocs said that about 75% of consumers buy Jibbitz to equip their clogging, according to his reserved research.
While Crocs revenues have been growing over the past five years, now he is trying to develop another free brand of footwear in his portfolio called Heydude, which he purchased in 2022 for $ 2.5 billion in the offer of cash and magazine.
The brand recorded a decrease in sales since Crocs took over and was forced to pay customers with almost $ 1.9 million in 2024 after FTC's allegations that it suppressed negative reviews of the product online and incorrectly returned customers.
In 2024, Heydude revenues fell by 13.2% compared to 2023, while Crocs increased by 8.8%.
“In fact, you make an investment and actually take hard -earned money from the Crocs brand, and then pour it and invest in Heydude,” said Adrienne Yih, a senior retail analyst Barclays. “They think that this is a good prospect of growth. At the moment the jury is on it.”
The Crocs brand also stands in the face of new winds with 46% of the president Donald Trump imposed on this week in Vietnam. The company announced that just over half of its production took place in Vietnam since 2021.