What happened
Shares of popular casual footwear maker Crocs (CROX -1.12%) popped today after the company introduced a new shoe made of a bio-based material as it aims to reduce its carbon footprint. Investors applauded the news, sending shares to an all-time high. The stock gained as much as 14.6% and still remained up 11.5% as of 2:15 p.m. EDT. Today's rise brings the stock's year-to-date return to 145%.
So what
Crocs management previously announced that the company would achieve net zero emissions by 2030. The company marketed the plan with the tag line "comfort without carbon." Now Crocs has provided details on a new shoe that will be produced using bio-based material it calls Croslite. The material will help the company achieve its target of a 50% reduction in its carbon footprint per pair of Crocs, on its path to net zero emissions by 2030.
Image source: Getty Images.
Now what
Crocs worked with materials company Dow Inc. using a technology that Crocs says "transforms sustainably sourced waste and byproducts into a shoe that has all the comfort you expect from Crocs, but with far less carbon." The company plans to offer the new shoes globally beginning early next year.
Crocs plans to achieve its emissions goal through several approaches, including using renewable energy to power its offices and warehouses. But Crocs shares didn't just hit a new high because of the interest from socially responsible investors. In its second-quarter 2021 earnings report, it announced record revenue that grew 93% over the prior-year period. Operating income more than tripled over 2020, and the company predicts a 60% to 65% revenue increase for the full year compared to 2020.
