The Growth of Crocs

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1) International: no secret here, as you can count the stores (more stores in India than China), from their web site (international). The trick here is they expanded internationally at much early stage compared to Nike, etc., considering they are just a few years old. We can attribute partly to the globalization of economy and branding.


Keep in mind both CEO Ron Snyder and CFO Peter Case have significant international experience before joining Crocs. I think this is more relevant than just paying attention to their stock sales. As long as they can make me (shareholder) money, do I care how much money they make?

2) License deal:
Too many, from Disney(kids) to Sports related: AVP, NCAA (college), NFL, Nas Car…

The above two strategies made up the organic growth.

3) Acquisition:
Jibbitz (decrorations for Crocs): Oct 2006, 10 million cash + 10 million performance based payout. This one hits top line (revenue) and bottom line now.

Ocean Minded (flip flops): Feb 2007, 1.75 m cash + 3.75 m performanced based. It’s a much smaller (nich) market, from my observation this market is bit crowded, e.g., Pac Sun carries lots of “surf” related stuff. Another brand comes to mind is “Reef” flip flop, it can be seen everywhere including Journerys and Sports Athority.

Exo Italia: it’s an Italian footwear design firm, the press release did not say how much Crocs paid. They are launching YoubyCrocs this fall. I am not sure how successful this will be because I don’t know ladies fashion footwear.

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