Why Did Crocs Shares Go for a Run Today?

Shares of footwear designer Crocs (NASDAQ: CROX  ) put on their running shoes this morning, rising as much as 4.5% on fairly average trading volume.

The catalyst for Crocs' big move is somewhat unusual. The company just elevated Andy Sackmann from VP of marketing to the C-suite title of chief marketing officer.

Why is this seemingly minor adjustment of Crocs' marketing department such a big deal? The answer is twofold, I think.

First, Crocs' business is very much driven by marketing and brand image. There's no shortage of copycats and wannabes who offer similar products, often at a lower price. So hammering home the message that Crocs is different and better is a crucial part of the company's sales strategy. We've seen this film a million times before, just not too often in the casual footwear market.

Second, Sackmann has been doing a heck of a job so far. In every earnings call since his VP appointment two years ago, upper management comes back to "effective marketing programs," successful campaigns with an emotional message, and a rising focus on social and mobile promotion. These plaudits run right through Sackmann's office, particularly the digital components where he personally held the reins.

Sackmann's predecessor, fellow digital media expert Andrew Davison, didn't exactly do anything to lose his job. He certainly played a large part in all these positive brand-boosting activities, being Sackmann's immediate boss and all.

But the company is ready for a tighter focus on digital and emotional marketing, and it looks like Sackmann's the better guy for that position. Expect a louder Crocs presence in social media from now on, as Sackmann's style takes hold.

Investors sure seem to agree with that conclusion today.

The price of becoming the world's greatest investor is that Warren Buffett can no longer make many of the types of investments that made him rich in the first place. Find out about one such opportunity in "The Stock Buffett Wishes He Could Buy." The free report details a sector of the economy that Buffett's heavily invested in right now, and exactly why he can't buy one attractive company in that sector. Click here to keep reading. 


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2347437, ~/Articles/ArticleHandler.aspx, 10/21/2014 8:07:48 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement