TIME named it one of its "50 worst inventions" in 2010.
Daily Mail called it "the ugliest shoe ever invented."
Since 2009, Crocs has over 12.8 Billion in revenue and 300M pairs sold.
THREAD: How a foam boating clog became a global sensation.
Daily Mail called it "the ugliest shoe ever invented."
Since 2009, Crocs has over 12.8 Billion in revenue and 300M pairs sold.
THREAD: How a foam boating clog became a global sensation.
1/ It's November 2002, and George Boedecker, Jr., Lyndon Hanson III, and Scott Seamans are headed to a boat show.
The Ft. Lauderdale international boat show to be specific.
Why? To market their new product.
A foam boating clog...
Sounds exciting right?
The Ft. Lauderdale international boat show to be specific.
Why? To market their new product.
A foam boating clog...
Sounds exciting right?
2/ Rewind to a few months earlier:
While on a sailing trip, Boedecker and Seamans had come across a new style of boating clog.
The shoe, then produced by a Canadian company called, "Foam Creations, Inc." had several advantages over current offerings.
While on a sailing trip, Boedecker and Seamans had come across a new style of boating clog.
The shoe, then produced by a Canadian company called, "Foam Creations, Inc." had several advantages over current offerings.
3/ Due to a proprietary foam material called "Croslite," they were light, slip-resistant, and did not absorb odor.
They were onto something.
Upon their return, Boedecker and Seamans brought in their 3rd partner, Hanson, & decided they would bring this new shoe to market.
They were onto something.
Upon their return, Boedecker and Seamans brought in their 3rd partner, Hanson, & decided they would bring this new shoe to market.
4/ They needed a name.
Let's face it, "new and improved boating clog" doesn't exactly send the masses running for the cash register.
The name they decided on? "Crocs"
Short for crocodiles; the shoes were comfortable on both land and water, long-lasting, and strong.
Let's face it, "new and improved boating clog" doesn't exactly send the masses running for the cash register.
The name they decided on? "Crocs"
Short for crocodiles; the shoes were comfortable on both land and water, long-lasting, and strong.
5/ Back to the boat show:
With 1000 pairs of their first design in hand, "The Beach," the 3 men arrived at the show ready to test the waters.
What happened next?
They sold out.
With 1000 pairs of their first design in hand, "The Beach," the 3 men arrived at the show ready to test the waters.
What happened next?
They sold out.
6/ Looking to capitalize on their initial success, they lined up their next show in March 2003.
Known as the "Shoe Market of the Americas," this would be the first true footwear trade show the group would attend.
Interest was overwhelming.
Known as the "Shoe Market of the Americas," this would be the first true footwear trade show the group would attend.
Interest was overwhelming.
7/ They quickly added multiple retail accounts and within a year of the show had well over 300.
What they were beginning to learn?
The market for their boating clog was much bigger than they ever imagined.
What they were beginning to learn?
The market for their boating clog was much bigger than they ever imagined.
8/ Everyone from medical staff, to restaurant workers, to teen trendsetters loved them.
One year in, they had sold 76,000 pairs resulting in $1.2M in sales.
Year two? 649,000 pairs totaling $12.3M.
One year in, they had sold 76,000 pairs resulting in $1.2M in sales.
Year two? 649,000 pairs totaling $12.3M.
9/ In 2004, driven by their rapid growth, the group would acquire "Foam Creations, LLC."
What did this mean?
They now owned the manufacturing facilities as well as the rights to the proprietary Croslite material, the "secret sauce."
What did this mean?
They now owned the manufacturing facilities as well as the rights to the proprietary Croslite material, the "secret sauce."
10/ The rights secured, the men began to lay the groundwork to take their company public.
Step 1: Drop their original name.
Up to this point, they had been operating under the name "Western Brands, LLC."
Not great...
In 2005 "Crocs, Inc." was born.
Step 1: Drop their original name.
Up to this point, they had been operating under the name "Western Brands, LLC."
Not great...
In 2005 "Crocs, Inc." was born.
11/ Step 2: Expand their product offerings.
In preparation for its IPO, the brand needed to prove to investors it would continue to grow.
By the end of 2005, Crocs offered 9 different models in 17 colors.
In preparation for its IPO, the brand needed to prove to investors it would continue to grow.
By the end of 2005, Crocs offered 9 different models in 17 colors.
12/ Step 3: Increase Advertising.
On the back of an ad campaign titled "Ugly Can Be Beautiful," the group would experience their best year so far.
2005 would see the company sell 6M pairs resulting in $109M in revenue, ultimately netting their first profit.
On the back of an ad campaign titled "Ugly Can Be Beautiful," the group would experience their best year so far.
2005 would see the company sell 6M pairs resulting in $109M in revenue, ultimately netting their first profit.
13/ 2006: Going Public
As a result of their meteoric rise in popularity, investor interest continued to grow.
So did the price Crocs was able to ask.
Originally planning to offer roughly 10M shares in the $13-$15 range, the final price would be much higher.
As a result of their meteoric rise in popularity, investor interest continued to grow.
So did the price Crocs was able to ask.
Originally planning to offer roughly 10M shares in the $13-$15 range, the final price would be much higher.
14/ In the hours leading up to their offering, the per-share price ballooned to $21.
The result?
The group raised over $200M.
The largest IPO in history for a footwear manufacturer.
The result?
The group raised over $200M.
The largest IPO in history for a footwear manufacturer.
15/ Life was good.
Over the next couple of years, Crocs would continue to grow in popularity and profitability.
The final revenue numbers?
2006 👉🏻 $355M
2007 👉🏻 $847M
Over the next couple of years, Crocs would continue to grow in popularity and profitability.
The final revenue numbers?
2006 👉🏻 $355M
2007 👉🏻 $847M
16/ Then 2008 happened.
Seemingly out of nowhere, Crocs lost its footing.
As with many other businesses, the brand was hit hard by the financial collapse sweeping across the country.
Experiencing its first decline in revenue in years, Crocs would lose over $200M.
Seemingly out of nowhere, Crocs lost its footing.
As with many other businesses, the brand was hit hard by the financial collapse sweeping across the country.
Experiencing its first decline in revenue in years, Crocs would lose over $200M.
17/ In a free-fall, the company would implement drastic cost-cutting measures.
Closing over 158 stores and eliminating 2000 jobs.
By 2009, stock prices had plummeted to an all-time low of $3 per share.
A 95% decrease from their all-time high of $70 just two years earlier.
Closing over 158 stores and eliminating 2000 jobs.
By 2009, stock prices had plummeted to an all-time low of $3 per share.
A 95% decrease from their all-time high of $70 just two years earlier.
18/ By 2009 the company was on the brink of bankruptcy.
What to do?
They had two choices: Close up shop, or push forward.
On they went.
What to do?
They had two choices: Close up shop, or push forward.
On they went.
19/ Over the next 2 years, the brand would continue to add new styles and begin to re-open retail stores.
By the end of 2011, over 250 models of Crocs were now available.
Sales had begun to improve, with the company reaching $1B in global revenue for the first time in 2011.
By the end of 2011, over 250 models of Crocs were now available.
Sales had begun to improve, with the company reaching $1B in global revenue for the first time in 2011.
20/ Although overall revenue was improving, the company was still falling short of expectations.
The stock price continued to suffer.
It was time for a change.
The stock price continued to suffer.
It was time for a change.
21/ In 2014, the company would receive a much-needed lifeline.
PE Firm, Blackrock, would inject $400M into the business.
Perhaps, more important than the cash, Blackrock also introduced a new CEO.
A former footwear executive named Gregg Ribatt.
Thus beginning the turnaround.
PE Firm, Blackrock, would inject $400M into the business.
Perhaps, more important than the cash, Blackrock also introduced a new CEO.
A former footwear executive named Gregg Ribatt.
Thus beginning the turnaround.
22/ By 2015, the original founders had exited the business, and Ribatt was in full control.
Over the next couple of years, sales would remain consistent but lacked the upward trajectory investors desired.
Over the next couple of years, sales would remain consistent but lacked the upward trajectory investors desired.
23/ In 2017, Ribatt would step down as CEO and be replaced by then Crocs President, Andrew Rees.
Rees' plan was simple:
•Upgrade the team
•Improve manufacturing
•Close underperforming stores
•Focus on the core product (the clog)
Most Important?
Make Crocs cool again.
Rees' plan was simple:
•Upgrade the team
•Improve manufacturing
•Close underperforming stores
•Focus on the core product (the clog)
Most Important?
Make Crocs cool again.
24/ How do you make something cool?
Well, when it comes to a shoe, the recipe is simple.
Get cool people to wear them!
Let's talk "Collabs"
Well, when it comes to a shoe, the recipe is simple.
Get cool people to wear them!
Let's talk "Collabs"
25/ In a stroke of Genius, Crocs began to partner with some of the biggest names in pop culture.
Artists ranging from Post Malone to Justin Bieber couldn't wait to get in on the action.
Limited edition offerings began selling out in a matter of minutes.
Artists ranging from Post Malone to Justin Bieber couldn't wait to get in on the action.
Limited edition offerings began selling out in a matter of minutes.
https://twitter.com/MorningBrew/status/1402665279059025923?s=20
26/ So where are we today?
As of the end of 2020, you could say "Crocs are back."
•Q4 Revenue: Up 55% to $407M
•2020 Year-End Revenue: $1.38B (An all-time high)
•Current Stock price: $108/share
Not too bad for the "ugliest shoe ever made."
As of the end of 2020, you could say "Crocs are back."
•Q4 Revenue: Up 55% to $407M
•2020 Year-End Revenue: $1.38B (An all-time high)
•Current Stock price: $108/share
Not too bad for the "ugliest shoe ever made."
27/ Enjoy this? Want more like it, follow me @blakeaburge!
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•Quote Tweet / Comment - I'd love to know your thoughts.
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https://twitter.com/blakeaburge/status/1402371228179091472?s=20
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