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The steps are steep again. But the story of the shoe return is not just a fashion statement.
A significant disorder was the main fashion product in the early 2000s. However, the profitability of the brand was blurred during the great recession when it fought for international expansion. From 2008 to 2016, they were four years old, when the company’s operating profitability was negative, according to FactSet.
CROCS CEO Andrew Rice took the helm Crocs in 2017 and headed his turn strategy.
“When I joined the company, we updated the management team, we updated the strategy, and it was really about getting profitability. But also investing the right marketing and innovation levels so that we can create additional demand,” Rice said.
Crocs collaborated with brands ranging from Balenciaga to Pixar, and celebrities such as Justin Bieber and the post light to create limited issues. The pandemic also created a demand for comfortable shoes among consumers who were stuck at home with medical workers.
From 2020 to 2021, the brand increased the profit from approximately $ 1.3 billion to approximately $ 2.3 billion. Profitability also increased when the Crocs operating profitability jumped from 17.2% to 29.8% over the same period of time according to Factset data.
As for its branding, Crocs have moved its messages and began to criticize its colorful and unique species.
“They came back to their original clogging and mostly used it as a canvas for self -expression“ said Annie Wilson, a senior marketing teacher at Wartton’s school. “The most important thing I saw in terms of the message is their shift from trying to convince consumers that it is about comfort and functions to say,” Yes, we know that we are ugly, but so you have to love us because it makes us peculiar and unique. “
Crocs leaned against personalization through its decorative spells known as Jibbitz. The company reported CNBC that Jibbitz’s profits in 2024 amounted to $ 271 million, which is just over 8% of the brand’s revenue.
“They are very profitable, but the most important part is not only the direct contribution of profits, but also simply interact with this consumer to really return them to the brand again and again,” said Crocs President Anne Melman.
Crocs said about 75% of their consumers buy Jibbitz for their clogs, according to their own poll.
While the Crocs profit has been increasing over the past five years, it has been trying to grow another everyday shoe brand in its portfolio called Heydude, which it purchased in 2022 for $ 2.5 billion in cash.
The brand has a decrease in sales since its acquisition Crocs, and was forced to pay nearly $ 1.9 million in 2024 after faced with allegations to the FTC, that it has filed negative reviews on its products online and incorrectly returns customers.
In 2024, the heydude profit decreased by 13.2% compared to 2023, while Crocs rose by 8.8%.
“You actually make an investment and you actually accept the money from the Crocs brand, and then you pour it and put it in Hedude,” said the senior retailers Barclays Adrienne Yih. “They believe that this is a good growth prospect. Now the jurors have come out.”
This week, the Crocs brand also faces new winds with Donald Trump’s 46% tariffs on Vietnam. The company reported that just over half its production has occurred in Vietnam since 2021.
