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Crocs: A Fashion Brand’s Remarkable Resurgence
Crocs are experiencing a revival in popularity, but the story behind the brand’s resurgence extends beyond mere trends in fashion.
Initially a hallmark of early 2000s style, Crocs saw a decline in profitability in the years following the Great Recession. The company struggled with international expansion, resulting in four years of negative operating margins from 2008 to 2016, as reported by FactSet.
In 2017, Andrew Rees took over as CEO and initiated a comprehensive turnaround strategy for Crocs.
“Upon my arrival, we revamped the management team and our strategic focus aimed squarely at achieving profitability. Alongside that, we emphasized marketing and product innovation to stimulate demand,” Rees said regarding the company’s new direction.
Crocs established collaborations with high-profile brands such as Balenciaga and Pixar, enlisting celebrities like Justin Bieber and Post Malone for exclusive product releases. The COVID-19 pandemic further fueled demand for comfy footwear as individuals spent more time indoors, including healthcare workers who required practical shoes.
Between 2020 and 2021, Crocs reported a revenue leap from around $1.4 billion to roughly $2.3 billion. Its profitability surged as well, with operating margins increasing from 17.2% to 29.8%, according to FactSet data.
In terms of branding, Crocs adapted its messaging, embracing the playful critique surrounding its distinctive and vivid design.
“They reverted to their classic clog design, using it as a medium for self-expression,” explained Annie Wilson, a senior marketing lecturer at The Wharton School. “Their communications shifted from promoting comfort and functionality to proudly acknowledging their unconventionality. They leaned into their perceived ‘ugliness’ and encouraged consumers to appreciate the uniqueness it offered.”
Crocs also invested in personalization through its Jibbitz charms, which consumers can use to customize their shoes. Revenue from Jibbitz reached $271 million in 2024, representing over 8% of the total brand revenue.
“These charms are certainly profitable, but their value lies in re-engaging consumers, fostering a stronger connection to the brand,” stated Anne Mehlman, President of Crocs.
Surveys indicate that roughly 75% of Crocs consumers purchase Jibbitz to embellish their clogs.
While the brand’s revenue has consistently risen over the past five years, Crocs is now focused on bolstering another footwear line, HeyDude, which it acquired in 2022 for $2.5 billion. However, since the acquisition, HeyDude has faced declining sales and was mandated to compensate almost $1.9 million to customers in 2024 due to FTC allegations of suppressing negative product reviews and mishandling refunds.
In 2024, HeyDude’s revenue dropped by 13.2% in contrast to 2023, whereas Crocs itself enjoyed an 8.8% revenue increase.
“Investments are being made using profits from Crocs’ successful brand to support HeyDude,” noted Barnes senior retail analyst Adrienne Yih. “They believe in its growth potential, but its future remains uncertain.”
Additionally, the Crocs brand faces challenges from new tariffs, with a recent 46% duty imposed by former President Donald Trump affecting imports from Vietnam, where over half of its production has been situated since 2021.
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