Crocs

From Wikipedia, the free encyclopedia

Crocs Inc.
Type Public (NASDAQ: CROX)
Founded 2002
Headquarters Niwot, Colorado
Industry Wholesale Trade, Retail & Consumer Services, Clothing & Clothing Accessories
Products shoes
Revenue US$847.4 (mil.) (2007)
Operating income US$168.2 (mil.) (2006)
Net income US$64.4 (mil.) (2006)
Employees 5300[1] (2007)
Website www.crocs.com

Crocs Inc. (NASDAQ: CROX) is an American company founded by Lyndon "Duke" Hanson, Scott Seamans, and George Boedecker[2] in July 2002. Based in Boulder, Colorado, the firm was created to market a lightweight plastic shoe first developed and manufactured by Foam Creations Inc.[1] of Quebec City, Canada.

Originally intended as a boating/outdoor shoe because of its slip-resistant, non-marking sole, Crocs introduced its first model, the Crocs Beach, in November 2002 at the Ft. Lauderdale Boat Show, selling out the 200 pairs produced at that time.[3]

As of 2007, the product line has remained popular, indicated by high sales growth, and has the characteristics of a sustained fad, with both ardent support[4] and disapproval.[5]

Crocs has been the title sponsor of the Association of Volleyball Professionals (AVP) Tour since 2006.

Contents

[edit] Manufacture and patents

In June 2004, Crocs purchased Foam Creations and their manufacturing operations to secure exclusive rights to the proprietary foam resin "croslite", which is made using ethylene vinyl acetate[6][7]. The foam forms itself to a wearer's feet and offers purported medical benefits, according to a number of podiatrists.[8][9]

Crocs holds four patents covering various utility aspects of its footwear, U.S. Patent No. 6993858 B2 issued February 7, 2006, and U.S. Patent Nos. D517788,, D517789 and D517790 issued on March 28, 2006. The Company also announced that it has filed complaints with the U.S. International Trade Commission (ITC) and the U.S. Federal District Court against 11 companies that manufacture, import or distribute products called Crock-offs that Crocs believes infringe its patents.[10]

[edit] Acquisitions

Various types of Crocs with accessories
Various types of Crocs with accessories

On October 3, 2006, Crocs purchased Jibbitz, a manufacturer of accessories that snap into the holes in Crocs, for US$10 million.

[edit] Health and safety

Shoes such as Crocs and flip-flops came under scrutiny in 2006 when children suffered injuries after the shoes became caught in escalator mechanisms.[11] This was due to the softness of the shoe's material combined with the relatively smaller size of children's feet.[12]

Rapid City Regional Hospital in Rapid City, South Dakota changed its dress code in 2007 to prohibit the sandal variants, along with those with Jibbitz holes, citing safety concerns, but still allowed closed-top "Professional" and the healthcare focused "Rx" Crocs to be worn.[13] Blekinge hospital in Sweden has banned the wearing of "Foppatoffels" (Swedish nickname derived from the owner of the company that imports the shoes, Peter "Foppa" Forsberg) by hospital staff, due to the concern that the shoes may build up static electricity and thus interfere with electronic equipment.[14][15]

[edit] Fashion, Media and Stock Price

Bill Maher New Rule: Stop wearing plastic shoes
Bill Maher New Rule: Stop wearing plastic shoes

While some regard Crocs shoes as comfortable and colorfully decorated, others see them as a fashion disaster, and a sub culture has emerged of people who vocally oppose the shoes. A Washington Post article described the phenomenon: "Nor is the fashion world enamored of Crocs. Though their maker touts their 'ultra-hip Italian styling,' lots of folks find them hideous."[8] A blog named "I Hate Crocs dot com." follows Croc opponents periodically.[5] The shoes have been targets of satire: on Real Time with Bill Maher, Maher called for a "New rule: stop wearing plastic shoes," over a photo of Crocs,[16] and The Daily Show "Senior Public Restroom Correspondant" Rob Corddry, following up on the Senator Larry Craig June 2007 lewd conduct arrest, "reported" that anyone wearing Crocs is signalling "anything goes."[17] Commentators have noted that social networking sites are collectively allowing individuals to share their distaste for Crocs[18]. Crocs are #6 on the "Worst" list of Maxim's "The 10 Best & Worst Things to Happen to Men in 2007."[19] Crocs have also made an appearance in the the movie Idiocracy: In the movie, which presents a future in which culture greatly degrades over time and the general public is made up of morons, some characters, including the main character, can be seen wearing shoes resembling Crocs.

On October 31st, 2007 the stock CROX dropped from $75 per share to slightly under $40 (its value six months previously) when the company announced decreased revenue projections. [20] [21] [22] [23] [24] [25] [26] On April 14th, 2008, the stock dropped 30% in after-hours trading after the company issued a press release in which they significantly guided down earnings estimates for the first quarter. In the same statement they also said they would fire its 600 Quebec City factory employees as retailers have been reducing orders, though about 100 sales and marketing positions will remain. "The retail environment in the U.S. has become increasingly challenging as consumer spending and traffic levels have slowed," Chief Executive Officer Ron Snyder said.

[edit] Products

A Crocs display in a shop
A Crocs display in a shop

Crocs come in a variety of styles. They are usually manufactured in China, but they are also made in Florida, Mexico, Romania, Italy and Brazil.[citation needed]

The shoes are produced in a wide array of colors depending on the model. The Beach and Cayman styles are available in more than 20 colors; most other styles are produced in a palette of four to six colors or two-color combinations.

Additionally, Crocs also sells other fashion accessories. It has released a line of purses that are also produced in a wide array of colors.

[edit] Popular Culture

Crocs are involved in popular culture around the world. The globalization of the Crocs through the past five years has been done by the company practicing consistency with their products in order to achieve global success. Globalization theorists have said that an important feature of a successfully globally disseminated product is an underlying functionality.

[edit] References

  1. ^ Crocs Inc. Q4 2007 Earnings Call Transcript - Seeking Alpha
  2. ^ When Crocs attack, an ugly shoe tale Diane Anderson, Business 2.0 Magazine (CNNMoney.com), November 3, 2006, accessed February 2, 2007.
  3. ^ Fashion Attack, Elizabeth Wellington, Philadelphia Inquirer, 2007-07-05. Retrieved 2007-08-25.
  4. ^ crocfans.com CrocFans website.
  5. ^ a b I Hate Crocs dot com. Retrieved on 2007-08-13.
  6. ^ Maniscalco, Michelle (March, 2007). E-shots Web-exclusive: Patent check: What's in a Croc?. Injection Molding Magazine. Retrieved on 2007-07-31.
  7. ^ US patent 6993858
  8. ^ a b ""Not Such A Croc"", Washington Post, 1 August 2006, pp. HE01. Retrieved on 2007-08-13. 
  9. ^ Form 10-K for Crocs Inc. (archive) Crocs 2006 Annual Report. Yahoo!Finance. March 31, 2006. accessed 2007-04-29.
  10. ^ [http://sec.edgar-online.com/2006/08/14/0001104659-06-054218/Section13.asp CROCS, INC. Form:10-Q] Filing Date:8/14/2006.
  11. ^ Crocs can pose a danger on escalators ABC News. Kate Snow, October 5, 2006, accessed 2007-04-19.
  12. ^ Experts recommend caution while wearing clogs WMC-TV Memphis Tennessee. September 21, 2006, accessed 2007-04-19.
  13. ^ Holey Crocs get the boot at Regional Hospital Mary Garrigan, Rapid City Journal, February 1, 2007, accessed 2007-04-18.
  14. ^ Swedish hospital to ban 'Foppatoffels' The Local(Sweden), April 18, 2007, accessed on April 20, 2007.
  15. ^ Plastic clogs disrupt machinery in Swedish hospital Guardian Unlimited (AP), April 19, 2007, accessed April 19, 2007.
  16. ^ "August 24, 2007". Real Time with Bill Maher. HBO. 2007-08-24. No. 1, season 10. 51.5 minutes in. "It was only a year ago when only pre-schoolers and mental patients wore these. But now grownups, all over America, have gone Croc crazy. The latest step in our unending quest to dress as casually as humanly possible. You know, I used to wear flip-flops, but they were a little dressy. I want clothing I can hose down! Admit it: we're a nation of slobs who won't be happy until we can go to the mall in a diaper."
  17. ^ "September 10, 2007". The Daily Show with Jon Stewart. Comedy Central. 2007-09-10. 10 minutes in. "...Oh, and Jon, anyone in those brightly colored plastic Crocs? That means anything goes. We're talking hardcore ass-[censored] stuff - scat play. And Jon, that's not just in bathrooms. Anytime you see anyone wearing crocs, be aware. ... If they're wearing Crocs, they are soliciting incredibly depraved gay sex. You can take that to the bank."
  18. ^ Croc On; Rob Walker, New York Times Magazine, 2007-07-15
  19. ^ The 10 Best and Worst Things to Happen to Men in 2007. Maxim Magazine. Retrieved on 2007-12-25.
  20. ^ CROX: Basic Chart for CROCS, INC. - Yahoo! Finance
  21. ^ Crocs Shares Plummet on 3Q Results; Yahoo Finance News(AP), 2007-11-01
  22. ^ Crocs Chokes
  23. ^ TheStreet.com : Crocs Gets Stomped | Retail | CROX
  24. ^ http://biz.yahoo.com/ap/071101/crocs_ahead_of_the_bell.html?.v=1
  25. ^ UPDATE 2-Crocs outlook lags Wall Street, shares tumble | Markets | Markets News | Reuters
  26. ^ Crocs Eats Shorts - Forbes.com

[edit] External links

Wikimedia Commons has media related to: