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Crocs has come a long way since the launch of
its first Beach shoe and now offers more than
250 designs.
PHOTO CREDIT: CROCS
FASHION & CONSUMER DEMAND
34
WORLD FOOTWEAR | MARCH/APRIL 2012
A
t the beginning of the financial crisis in 2008, shares
in the US-based plastic sandal brand Crocs
plummeted by 44.7% to $4.95 after a string of
disappointing trading updates. The following year,
the then CEO of the company, John Duerden, said that he
never wore the shoes and that his family, including his teenage
daughter, looked upon them with disdain. In May 2010,
Time
included Crocs shoes in its list of the world’s 50 worst
inventions. So it came as something of a surprise when the
polarising shoe brand announced in January this year that it
expects to post revenues of more than $1 billion for fiscal 2011.
For a company to garner such revenues in a decade is
nothing short of impressive. But when you take into account
the financial trouble the brand was in a few years ago - not
to mention the outright hatred that fashionistas have
unleashed upon the plastic sandals since their inception -
the achievement is utterly remarkable. It has been widely
reported that the Colorado company succeeded in driving
its revenues on the strength of its brand and solid presence
in the international market, but the uphill strategic battle the
bulky shoes faced has been largely overl ooked.
On announcing the company’s third quarter financial
results, John McCarvel, the current president and CEO,
stated: “We continued to experience strong global demand
versus the prior year period, particularly in Asia. The
performance of our spring-summer 2011 product line and
the composition of our backlog at September 30, 2011
underscores the progress we have made diversifying Crocs
beyond its clog origins. We still remain confident that our
long-term brand and growing selection of sneakers, casual
shoes, and boots have the ability to penetrate the cold
weather selling season in each of our geographic regions.
While these are competitive categories with established
leaders, we believe we can continue to capture market
share and further reduce the seasonality of our business
over the long-term.”
In the third quarter, revenue jumped 27.5% to $274.9 million.
Sales rose 24.3% at wholesale, 31.4% at retail and 33.7% at
internet. Gross profit increased 23.9% to $147.2 million.
Against the odds
Once considered by many to be just
another passing fad, the Crocs brand
has made it through its financial hurdles
and recently announced that revenue
for 2011 will have exceeded $1 billion.