Crocs is best known for its classic clog. But the quirky shoe company is beginning to make a name for itself in the fashion sneaker market.
In a call with analysts discussing the company’s second quarter results, Crocs Inc. chief executive officer Andrew Rees said that the company will continue to experiment with new sneaker styles after a successful inaugural launch in the category this past spring.
In May, Crocs launched its very-ever sneaker — the Crocs Juniper — in partnership with designer and Crocs creative director Salehe Bembury. The Juniper features an aggressive, translucent sole unit, continuing the design code that’s been central to Bembury’s Crocs footwear. The upper features a sock-like collar, giving the shoe a slightly less casual fit than Bembury’s clogs and sandals.
According to Rees, the Juniper sneaker, which retailed for $140, sold out within minutes of its release. He added that the shoe has since appeared on secondary marketplace places listed for multiples of the original price, which he said is “a testament to the strong consumer response.” On StockX, the shoe has broadly sold for more than $250 a pair since mid-July.
Looking forward, Rees said Crocs will continue to experiment with additional product releases in the sneaker category.
“The sneaker orientated product is really all about testing and experimentation,” Rees said. “It’s very, very small, but it’s really the pinnacle offering and we continue to experiment and test a whole range of sneaker-orientated silhouettes. That’s a longer-term strategy, but it’s important that we continue to innovate in that arena.”
Sneakers will also be a part of the turnaround story for the Crocs Inc.-owned Hey Dude brand, which once again posted declines in the most recent quarter.
“While leading from the core is our focus, we’ll make calculated bets with key sneaker and boot styles that the brand is also known for,” Rees said. “As we look into 2025, we see an opportunity to optimize our SKU count while still improving our channel segmentation and bringing new innovations to market.”
Still, sales of Crocs’ Classic Clog led growth for Crocs Inc. in the second quarter. Altogether, the Broomfield, Colo.-based footwear company reported better-than-expected results for the first quarter, which included a 3.6 percent revenue increase from the prior year to $1.11 billion. This was slightly ahead of the $1.1 billion expected by analysts surveyed by Yahoo Finance. Q2 adjusted diluted EPS was up 11.7 percent to $4.01, also ahead of the $3.56 expected by analysts.
