The Great Bet for Crocodiles on the allocation pays its fruits. Here is how that happened.

Crocodiles are cold again. But the story of the shoe company’s return is more than just a fashion statement.

The iconic plots were an essential element in the early first decade of the twentieth century. However, the brand’s profitability erodes in the years that followed the great recession because it is struggling to expand at the international level. From 2008 to 2016, there were four years when the company’s operating margin was negative, according to data from FactSet.

Andrew Reese, CEO of CROCS, Crexs in 2017 and led his strategy in transformation.

“When I joined the company, we updated the management team, and we updated the strategy, and this was really related to profitability. But also put the correct level of marketing and innovation of the product in the product so that we can create a gradual request,” Reese said.

Crocs has made a partnership with brands ranging from Balenciaga to Pixar, celebrities like Justin Bieber and Post Malone, to create limited versions. The epidemic also created a request for comfortable shoes among consumers who were stuck at home with medical specialists on the front lines.

From 2020 to 2021, the brand has grown from about $ 1.4 billion to about $ 2.3 billion. The profitability also increased, as crocodile operation margins jumped from 17.2 % to 29.8 % during the same time period, according to data from FactSet.

Regarding their brands, crocodiles transformed their messages and began to embrace the surrounding criticism with its colored and unique appearance.

“They returned to their original bridge and used it mainly as a fabric for self -expression“ Annie Wilson, a great lecturer for marketing at Warton School. “The biggest thing I saw from the messaging perspective was to turn them from trying to persuade consumers that it was related to comfort and job, to say mainly,“ Yes, we know that we are ugly, but this is why you should love us, because this is what makes us unique and unique. “

Crocodiles have bent severely through their decorative charm known as jibbitz. CNBC company told Jibbitz’s revenues of $ 271 million in 2024, which is just over 8 % of the brand revenue.

“It is very profitable, but the most important part is not just a direct profit contribution, but just dealing with this consumer to return them to the brand over and over again,” said Crocs,

CROCS said that about 75 % of its consumers buy Jibbitz to drop their dirt, according to its own surveys.

Although CROCS revenues have risen over the past five years, they are now trying to develop another unofficial brand in its portfolio called Heydude, which she obtained in 2022 compared to $ 2.5 billion in the cash and equipment deal.

The brand has witnessed a decrease in sales since its acquisition by CROCS, and forced nearly $ 1.9 million to customers in 2024 after facing FTC allegations that it had suppressed the negative reviews of its online customers and customers of their recovery incorrectly.

In 2024, Heydude revenues decreased by 13.2 % compared to 2023, while crocodiles increased by 8.8 %.

“You are doing investments, and you are actually taking the money acquired with the difficulty of the CROCS brand, and then provokes it and invests it in Heydude,” said Adrian Yi, a retail analyst, said the Barlis. “They believe this is a possibility of good growth. Now, the jury outside it.”

The CROCS brand also faces the new windows of the head of the tariff by 46 % Donald Trump imposed on Vietnam this week. The company stated that more than half of its production has occurred in Vietnam since 2021.