July 15, 2007
Crocs: Fad or For Real?
Posted by Fred Tung

Imggrapes_3 Are Crocs ugly?  There are websites devoted to their derision.   The proprietary resin ("NOT plastic NOR rubber") shoes have even won Ugly Shoe of the Year awards.  The company's stock, OTOH, has had a pretty good run since its IPO in early '06.  It IPO'd at 21; it closed Friday above 47.

Financial pundits have debated the staying power of the company and its Croslite (TM) clogs.  Now Crocs have finally made it to my Sunday morning reading via the NYT Magazine.  I tend to view this as something of a milestone.  Even if Crocs are just a fad, NYT coverage arguably elevates them to bona fide cultural phenomenon status.  So I wandered around the company's website for a little bit.  The quick history of the company goes like this:

Its (sic) all started when three Boulder, Colorado based founders decided to develop and market an innovative type of footwear called Crocs™ shoes.

Originally, Crocs were intended as a boating/outdoor shoe because of its slip-resistant, non-marking sole. By 2003 Crocs had become a bona-fide phenomenon, universally accepted as an all purpose shoe for comfort and fashion.

I also found out the originals now come in college colors, which for some reason I find endearing.  My kids wear the original ugly ones, too, as does just about every kid in their preschool and many of the parents.  So far my wife and I haven't succumbed (though for me, it's just been about finding my size in a color I can stand).  Probably a shoe and a company to watch.

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Comments (5)

1. Posted by Kirk Pearson on July 16, 2007 @ 0:58 | Permalink

You need to adjust the IPO price to 10.50 (to account for the recent 2-for-1 stock split). That price makes the current share price even more impressive.


2. Posted by Flippy on July 16, 2007 @ 4:31 | Permalink

Succumb quickly, your feet will thank you. I'm not one of those people who think they're ugly (I have neon orange, but then, I work from home), but they're so comfortable. I bought UCLA ones for my 78 year old mom for Mother's Day (she's a big sports fan...and they didn't have Dodgers ones yet), and since they were a tad too small, my partner kept them, and we got my mom another pair. All four feet are very happy with the purchase. Plus, they're cheap enough to buy as an experiment or just around the house. I was skeptical, but my surgery repaired back was happy with them (my back surgeon also wears them), so even if I did think they were ugly, I'd still wear them. I love that I can wipe them off with a paper towel and water and they look good as new.

Okay, back to work...


3. Posted by Christine on July 16, 2007 @ 6:40 | Permalink

My kids also have crocs and fairly live in them. (Luke has the Mickey Mouse ones, which cost $5 extra.) For my daughter, it's all about the jibbitz (www.jibbitz.com) (little decorative things that go in the holes). My son likes to surf the website to decide whether he wants Texas Longhorn crocs next or Virginia Hoos. I haven't gotten any yet, although I did just trade in my 8 year-old Tevas for some Chacos.


4. Posted by Fred Tung on July 16, 2007 @ 6:53 | Permalink

Kirk, thanks for the stock split history. It does make the current price even more impressive.

Yes, Christine, the jibbitz are one more fad/phenomenon piggybacking on another. Here's that backstory (from the jibbitz website):

History

Jibbitz was born in 2005 when owner and stay-at-home mom, Sheri Schmelzer, and her three children were inspired to decorate their collection of 12 pairs of Crocs in the basement of their Boulder, Colorado home. With clay and rhinestones, Schmelzer developed unique charms that fit into the holes of Crocs. Sheri's husband, Rich, saw the potential to create a unique accessory brand with colorful snap-on products specifically suited for Crocs shoes.

Beginning with a home equity loan and small assembly line in their basement, the Schmelzers launched Jibbitz, whose name is derived from Sheri's nickname "Flibberty-Jibbit." The Schmelzers began work on a few designs to share with family and friends and launched a website on their wedding anniversary, August 9, 2005. Within 1-year, Jibbitz were offered in thousands of stores and had sold over 8 million pieces worldwide.

In December 2006, the Schmelzers realized the "American Dream" when Crocs, Inc. announced that it had acquired Jibbitz LLC. Jibbitz currently operates as a wholly owned subsidiary of Crocs, Inc., and Founders Rich and Sheri Schmelzer have remained with Jibbitz as President and Chief Design Officer.


5. Posted by Joan Heminway on July 17, 2007 @ 7:58 | Permalink

Personally, I have become enamored of Havaianas, but maybe that's because I just got back from Brazil (where you can buy them for about $6.00) and because I always have loved flip flops . . . .

The University of Tennessee bookstore does carry a lot of orange Crocs, but I have not yet succumbed. One of my male colleagues, however, swears by them. My 15-year-old daughter thinks they're ugly (preferring ballet flats from American Eagle Outfitters and J.Crew), and my son is a Rainbow flip-flop fan. Finally, my husband is a Teva man. I guess in our family, you can tell a person by his or her shoes . . . .

Thanks for the fun post.

Joan

Joan

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