NASDAQ: CROX
Key Data Points
Founded in 2002 by three friends in Colorado, Crocs shoes were initially intended as a comfortable, slip-resistant boating shoe. The first model, called the "Beach," sold out all 200 pairs at the Fort Lauderdale Boat Show, where it made its commercial debut.
The shoes quickly gained popularity beyond boaters but eventually found a niche among other target customers, including healthcare workers, chefs, and gardeners, due to their comfort and practicality. Crocs went public in 2006 with the largest initial public offering (IPO) in footwear history at the time. But the global financial crisis of 2008 hit the company hard.
Crocs had overextended its product lines into various noncore items and accumulated excess inventory. At one point, the company was on the brink of bankruptcy, and its stock plummeted from a high of $68 to less than $1 a share. Just years after achieving niche popularity, in 2010, Crocs shoes were ranked among Time Magazine's 50 Worst Inventions.
However, that was not the end of Crocs. Few could have anticipated the massive resurgence in the brand's popularity that was to come.
Starting around 2014, management implemented a major restructuring. The company closed stores, streamlined its operations, and refocused on the classic clog silhouette as its core product. A pivotal moment came in 2016 when designer Christopher Kane featured crystal-studded Crocs at London Fashion Week.
This marked the beginning of a successful strategy of high-profile collaborations with celebrities like Post Malone and Justin Bieber and fashion houses like Balenciaga, which generated significant buzz and repositioned the brand as cool and innovative. The COVID-19 pandemic also provided an unexpected surge in demand as people working from home prioritized comfort and casual wear.
In 2022, Crocs acquired the casual footwear brand HEYDUDE for $2.5 billion to diversify its portfolio. Today, Crocs has transformed into a global footwear powerhouse.
While consumer spending trends come and go, Crocs has managed to retain consumer attention and loyalty, and its business has continued to grow despite the challenges of the macroenvironment of the last few years. Here's what investors need to know about how to invest in Crocs, whether or not you should consider putting your money to work in this stock, and more.
How to buy Crocs stock
If you want to buy shares of Crocs stock, it's fast and easy to do so. Here are the steps that you need to follow.
- Step 1: Open your brokerage account: Log in to your brokerage account where you handle your investments.
- Step 2: Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Step 3: Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Step 4: Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Step 5: Submit your order: Confirm the details and submit your buy order.
- Step 6: Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should I invest in Crocs?
If you're thinking about investing in Crocs stock, there are several green flags to consider.
The main Crocs brand continues to deliver impressive growth, particularly in international markets like China, Japan, and Western Europe. Since the acquisition of the HEYDUDE brand in 2022, Crocs has prioritized paying down the associated debt to fortify its balance sheet. In 2024, the company repaid approximately $323 million of debt.
Crocs has proven its ability to remain relevant through successful collaborations with celebrities and brands and by launching innovative products in the clog and sandal categories. The expansion of its direct-to-consumer channel has further strengthened its brand control and consumer relationships.
Crocs reported record annual revenues of $4.1 billion in 2024, a 4% increase over 2023. The company's financial performance is largely driven by the core Crocs brand. Fluctuating sales in certain markets, however, have weighed on results very recently.
In the third quarter of 2025, total revenue decreased by 6.2% compared to Q3 2024. Revenue for the core brand was down 2.5% to $836 million, affected by an 8.8% decline in North American revenues that was only partially offset by a 5.8% increase in international revenues. The HEYDUDE brand experienced a more significant revenue drop of 21.6% to $160 million.
The bottom line on Crocs
Crocs maintains strong operating margins (around 20%) and robust free cash flow, generating about $413 million in the first nine months of 2025. The company's strong growth in international markets is helping to partially offset weaknesses in the North American market, but investors should keep a close watch on these growth trends.
Crocs' revenue growth has slowed significantly from a few years ago. The acquisition of the HEYDUDE brand has presented integration challenges, and the brand has generally dragged on overall performance. As a consumer discretionary brand, the company could be susceptible to rapidly shifting consumer preferences and fashion trends in the future.
The core business remains strong and largely profitable, with solid margins and cash flow. That could warrant at least a modest investment in the business. If you tend to be more risk-averse, though, this shoe stock may not be for you.
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