Crocs

#1862

Rank

$7.69B

MarketCap US

US United States

Country

Summary
Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children. It offers various footwear products, including clogs, sandals, slides, flip-flops, boots, flats, wedges, platforms, socks, shoe charms, loafers, sneakers, and slippers under the Crocs brand name. The company sells its products in approximately 85 countries through wholesalers, retail stores, e-commerce sites, and third-party marketplaces. As of December 31, 2021, it had 193 outlet stores, 107 retail stores, 373 company-operated stores, 73 kiosks and store-in-stores, and 14 company-operated e-commerce sites. The company serves in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.

History

Crocs was founded by Lyndon "Duke" Hanson, and George Boedecker Jr. to produce and distribute a foam clog, whose design they acquired from Foam Creations, Inc. of Quebec City. The shoe was originally developed as a boating shoe. The first model produced by Crocs, the Beach, was unveiled in 2001 at the Fort Lauderdale Boat Show in Florida, and the 200 pairs that they had produced were all sold. Crocs has since sold 300 million pairs of shoes. In June 2020, Crocs moved the headquarters from Niwot, Colorado, to Broomfield.Crocs completed an initial public offering of its common stock in February 2006. It began trading on the NASDAQ Stock Market under the symbol CROX. On October 30, 2007, the stock dropped 24% when the company announced decreased revenue projections. On April 14, 2008, during the midst of the financial crisis of 2007–2008, the stock dropped 30% in after-hours trading after the company issued a press release in which they significantly decreased earnings estimates for the first quarter. In the same statement they also said they would lay off its 600 Quebec City factory employees as retailers had been reducing orders, though about 100 sales and marketing positions would remain. "The retail environment in the U.S. has become increasingly challenging as consumer spending and traffic levels have slowed," chief executive officer Ron Snyder said. During the financial crisis, CROX dropped to as low as $0.79 before rebounding . On October 18, 2011, Crocs stock suffered a single day drop of about 39.4% on lowered earnings and revenues forecast.In June 2013, Crocs reported a 42.5% decrease in net profits from a year before. As a result, the stock fell 20.2% in one day.In December 2013, the hedge fund SAC Capital Advisors disclosed that it held a 5% stake in Crocs, just over a day after The Blackstone Group said it would invest $200 million in a convertible preferred stock offering that would allow the company to replace its CEO and buy back $350 million in stock. In a filing with the U.S. Securities and Exchange Commission, SAC Capital management said it had accumulated a 5% passive stake in Crocs.On July 21, 2014, Crocs Inc. announced a restructuring plan to streamline its operations and workforce by eliminating 180 jobs, close 75 to 100 stores as well as scrapping underperforming product lines. Crocs has previously eliminated 183 positions, including 70 current and planned positions in its corporate headquarters in Niwot, Colorado. Crocs also announced they would open a "global commercial center" with 50 to 75 employees in Boston, Massachusetts, in 2014, for merchandising, marketing and retail functions. In August 2018, Crocs announced it was closing its last company-operated manufacturing plants in Mexico and Italy.

Acquisitions

In October 2006, Crocs Inc. purchased Jibbitz, a manufacturer of accessories that snap into the holes in Crocs shoes, for $10 million, or $20 million if Jibbitz met earnings goals.In January 2007, Crocs acquired assets of Ocean Minded for $1.75 million in cash, plus potentially $3.75 million based on performance. Ocean Minded makes leather and ethylene-vinyl acetate-based footwear. In July 2007 Crocs agreed to buy shoe- and sandal-maker Bite Footwear, based in Redmond, Washington, for $1.75 million, or up to double that based on earnings results.In April 2008, Crocs acquired Tidal Trade, Inc. , the company's third party distributor in South Africa, for $4.6 million. The company recorded $1.4 million in customer relationships on the date of acquisition. Crocs repurchased inventory previously sold to Tidal Trade and accordingly recognized a reduction of revenue of approximately $2.1 million. Also in April the company acquired Tagger International B.V. , a private limited liability company incorporated under Dutch law that manufactures messenger bags. Tagger was partially owned by the Managing Director of Crocs Europe B.V. The company acquired all Tagger assets for $2 million – $90,000 for inventory and $1.9 million for the Tagger trademark. Later in June, Crocs liquidated Fury, Inc. two years after acquiring it, after efforts to sell it off were unsuccessful. As a result, Crocs wrote off $250,000 related to the remaining customer relationships, intangible assets and trademarks over three months.In February 2022, Crocs acquired the Italian shoe company HEYDUDE for $2.3 billion, as well as issuance of stock to one owner of HEYDUDE.


Mission
At Crocs, we take our fun as seriously as we take our collective mission to make the world's most delightfully comfortable shoes.

Vision
Everyone Comfortable in their on shoes

Key Team

Mr. Daniel P. Hart (Exec. VP and Chief Legal & Risk Officer)

Ms. Corinne Lin (VP of Corp. Fin.)

Ms. Marisa F. Jacobs (Global Head of Investor Relations)

Ms. Shannon Sisler (Exec. VP & Chief People Officer)

Mr. David Thomson (Sr. VP & Gen. Mang. of Asia, Africa & Middle East Region)

Mr. Adam Michaels (Exec. VP & Chief Digital Officer)

Mr. Erik Olson (Sr. VP of Global Sourcing & Product Execution)


Recognition and Awards
Crocs has been named a “World’s Most Ethical Company” by the Ethisphere Institute for the past four consecutive years and “Healthiest Employer” for 2018 by Denver Business Journal for the fifth consecutive year.

References
Crocs
Leadership team

Mr. Andrew Rees (CEO & Director)

Ms. Michelle Poole (Pres)

Ms. Anne Mehlman (Exec. VP & CFO)

Products/ Services
Consumer, Shoes, Wearables
Number of Employees
1,000 - 20,000
Headquarters
Niwot, Colorado, United States
Established
2002
Company Registration
SEC CIK number: 0001334036
Net Income
500M - 1B
Revenue
Above - 1B
Traded as
CROX
Social Media
Fri Mar 01 2024
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