The latest stock sensation might just be hiding in your shoe closet or even on your feet right now. Colorado-based company Crocs Inc. CROX has quietly outperformed some of the biggest players in the market over the past five years, including tech behemoths like Microsoft Corp, Meta Platforms Inc., and Amazon.com, Inc.
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The shoe company that was once a fashion faux-pas has been making investors happy over the last five years. If you had invested $10,000 in Crocs in April 2018, you’d be sitting on roughly $76,000 today.
Initially marketed as boating and outdoor shoes, Crocs quickly gained a cult following for their unbeatable comfort, durability and funky design, appealing to a broad spectrum of consumers. The shoes come in a plethora of colors and are particularly popular with people who spend long hours on their feet, like nurses and chefs.
In 2006, Crocs had a successful initial public offering (IPO), raking in $208 million, one of the most impressive of the time. In 2012, the company generated revenue of $1.1 billion.
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By early 2022, that number had nearly tripled, hitting $3.6 billion. The massive revenue growth can be attributed to Crocs’ expansion into new footwear lines, such as sandals, and high-profile collaborations with companies like The Walt Disney Co. and Vera Bradley Designs Inc. to create limited-edition designs.
The foam clog maker has become a fashion sensation, even beloved by A-listers like Justin Bieber and Post Malone, and the company is enjoying the fruits of its labor.
Crocs’ shares have been skyrocketing, even as the rest of the market has been in turmoil. The stock has seen a staggering 222% increase from its July 2022 low of $46.08. In the past year, Crocs’ stock has added about 93%. Plus the acquisition of HEYDUDE for $2.5 billion has helped boost the company’s bottom line.
Crocs has gone from being the ugly duckling of the shoe world to the Cinderella story of the stock market. Its transformation has captivated investors and fashion enthusiasts alike, proving that even the most unconventional contenders can emerge victorious.
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