Crocs, Inc. engages in the design, development, marketing, distribution, and sale of casual lifestyle footwear and accessories for all.
The company offers casual footwear, combining comfort and style with a value that consumers want. The company owns 100% of the equity of a privately-owned casual footwear brand business (HEYDUDE). HEYDUDE engages in the business of distributing and selling casual footwear under the brand name HEYDUDE. The majority of HEYDUDE sales are in the United States.
Seg...
Crocs, Inc. engages in the design, development, marketing, distribution, and sale of casual lifestyle footwear and accessories for all.
The company offers casual footwear, combining comfort and style with a value that consumers want. The company owns 100% of the equity of a privately-owned casual footwear brand business (HEYDUDE). HEYDUDE engages in the business of distributing and selling casual footwear under the brand name HEYDUDE. The majority of HEYDUDE sales are in the United States.
Segments
The company operates through two segments: the Crocs Brand and the HEYDUDE Brand.
Crocs Brand
Recognized globally for its unmistakable iconic molded clog silhouette, the company has taken the successful formula of a simple design aesthetic, paired it with modern comfort, and expanded into a wide variety of casual footwear products, including sandals—wedges, flips, and slides—that meet the needs of the whole family.
The vast majority of Crocs shoes feature Croslite material, a proprietary, revolutionary technology that gives each pair of shoes the soft, comfortable, and lightweight qualities that the company’s fans know and love. The company also uses Croslite material formulations in connection with material technologies used in its visible comfort collections, such as its LiteRide and Free Feel Technology products. The ocmpany’s products containing LiteRide and Free Feel Technology feature comfort-focused, proprietary foam insoles which are soft, lightweight, and resilient.
HEYDUDE Brand
The HEYDUDE Brand offers shoes with an iconic and versatile loafer silhouette with many wearing occasions that focus on casualization, comfort-led functionality, and personalization. The HEYDUDE Brand utilizes leading technologies, including a flex-and-fold outsole and ergonomic insole. The shoes are known for being lightweight, flexible, and soft, with design and functional flexibility for convenience.
Products
The company has a single-style clog in six colors. The company offers a broad portfolio of all-season products, while remaining true to its core casual footwear heritage.
Marketing
Each season, the company focuses on presenting compelling brand stories and experiences for its new product introductions, as well as its ongoing core products. The company employs social and digital marketing centered on showcasing its clog, sandal silhouettes, and Jibbitz charms for the Crocs Brand and its versatile loafer silhouette for the HEYDUDE Brand. The company continues to invest in partnerships, including McDonald’s, Toy Story, Simone Rocha, Sydney Sweeney, and Jelly Roll. The company strives to listen and respond quickly to its customers to give them new and innovative reasons to continue to choose the Crocs and HEYDUDE brands.
Distribution Channels
The broad appeal of the company’s footwear has allowed it to market its products in more than 80 countries through two distribution channels: wholesale and direct-to-consumer (DTC).
Wholesale Channel
During the year ended December 31, 2024, 50.3% of the company’s consolidated revenues, respectively, were derived through its wholesale channel. The company’s wholesale channel includes domestic and international multi-brand retailers, mono-branded partner stores, e-tailers, and distributors. Brick-and-mortar customers typically include family footwear retailers, international, national, and regional retail chains, sporting goods stores, and independent footwear retailers.
Outside the U.S., the company uses distributors when such arrangements are economically preferable to direct sales. The company’s typical distribution agreements have terms of one to five years and can be terminated or renegotiated if minimum requirements or other terms are not met.
Direct-to-Consumer Channel
The company’s DTC channel includes company-operated e-commerce sites, third-party marketplaces, company-operated full-price retail stores, outlet stores, and kiosks/store-in-store locations. During the years ended December 31, 2024, 49.7% of the company’s consolidated revenues were derived through its DTC channel.
E-commerce
As of December 31, 2024, the company offered its products through 23 company-operated e-commerce sites worldwide and also on third-party marketplaces. The company’s e-commerce presence facilitates a greater connection with its consumers and provides it with an opportunity to educate them about its products and brands. The company continues to leverage increasingly sophisticated digital marketing activities to enhance the consumer experience and drive sales, thereby benefiting from the continued migration of consumers to online shopping.
Retail
With the continued worldwide consumer shift toward e-commerce, the company carefully manages its retail fleet, especially full-priced retail stores. As of December 31, 2024, the company had company-operated stores for the Crocs Brand and HEYDUDE Brand.
The company-operated full-price retail stores allow it to effectively showcase the full extent of its product range to consumers and provide it with the opportunity to interact with those consumers directly.
The company sells full-priced products in its outlet stores, as well as built-for-outlet products. The company-operated kiosks and store-in-store locations allow the company to market specific product lines, with flexibility to tailor products to consumer preferences in shopping malls and other high foot-traffic areas.
Distribution and Logistics
As of December 31, 2024, the company principally stored its finished goods inventory in company-operated warehouses and distribution and logistics facilities located in the U.S. and the Netherlands. During 2024, the company further expanded its U.S. distribution centers in Nevada for the HEYDUDE Brand to increase distribution capacity. The company also utilized third-party operated distribution centers located in the United States, Japan, China, Australia, South Korea, Singapore, India, Brazil, Canada, the Netherlands, and the United Kingdom. As of December 31, 2024, the company-operated warehouse and distribution facilities provided it with 2.9 million square feet, and its third-party operated distribution facilities provided it with 0.9 million square feet, with additional area available based on inventory levels.
Intellectual Property and Trademarks
The company owns or licenses the material trademarks used in connection with the marketing, distribution, and sale of all of its products, both domestically and internationally, in most countries where its products are either sold or manufactured. The company’s major trademarks for the Crocs Brand include the Crocs logo and the Crocs word mark, both of which are registered or pending registration in the U.S., the European Union, Japan, Taiwan, China, and Canada, among other countries. The company’s major trademarks for the HEYDUDE Brand include the HEYDUDE logo and word mark. The HEYDUDE word mark is registered in the U.S., the European Union, China, and Singapore, among others. Protection for the HEYDUDE logo has been filed in the U.S. and other countries and has moved to registration in some, including Singapore, the United Kingdom, and Australia among others.
In the U.S., the company’s patents are generally in effect for up to 20 years from the date of filing the patent application. The company considers the formulations of the materials used to produce its Crocs Brand footwear covered by its trademarks Croslite, LiteRide, and Free Feel Technology, among others, valuable trade secrets. The material formulations are manufactured through a process that combines a number of components in various proportions to achieve the properties for which the company’s Crocs Brand products are known. The company’s Crocs Brand products depend on the properties achieved from the compounding of the Croslite, LiteRide, and Free Feel Technology materials.
Research and Development
The company incurred expenses of $25.6 million in research, design, and development activities for the year ended December 31, 2024.
History
Crocs, Inc. was founded in 1999. The company was incorporated in 2005.