Crocs Are Not Just Shoes Anymore
Crocs (NAS: CROX) is all set to report revenue in excess of $1 billion -- a first for the company. But the footwear retailer is not resting on its laurels, as it looks to expand and explore more avenues of growth. Crocs is entering into a number of licensing agreements, which will see the brand offering accessories and apparel as well as eyewear.
Certifiable ways of growth
Crocs is not new to co-branded products. Its golf shoes with Hank Haney got rave reviews and were chosen as one of the "best new products" at the recent PGA merchandise show.
It's no surprise then that Crocs is looking to delve into more such deals. The company has already signed on with Sock & Accessory Brands, where it began selling Crocs-branded socks from the last holiday season in North America through both the wholesale and retail channels. The socks are geared toward both adults and children. In Europe, Crocs-branded socks will be produced by Intersocks.
A deal with Accessory Exchange allows Crocs to venture into accessories ranging from hats and gloves to backpacks and bags. It recently entered into a deal with sports licensee Paramount, which is already selling collegiate- and Major League Baseball-licensed footwear under the Crocs name.
The company, in affiliation with ICER Brands, will sell Crocs scrubs for medical professionals. And that's not all, as Crocs will also start selling children's apparel in 46 countries with the help of A Group in April this year.
Last but not least, with the help of Eyeking, Crocs will sell branded sunglasses and sunglass accessories in May.
The growing brand persona
The plastic-shoe maker that was battling to stay afloat a few years ago has grown by leaps and bounds since then. Crocs is clearly looking to go beyond just footwear. This may be an attempt to emulate the success of fellow footwear maker Nike (NYS: NKE) , which had initially started off with footwear sales, but has since then diversified into various products such as apparel, bags, and accessories. And we all know how well-renowned Nike is.
According to Mike DeBell, Crocs' vice president of global sales, these licensing agreements will help bolster Crocs' brand image across the globe and help it establish itself in products beyond footwear. To understand how big the Crocs brand is, know this -- already 200 million pairs of Crocs have been sold in more than 90 countries. Crocs' popularity is cutting across borders -- much of its 21% profit rise in the last quarter can be attributed to higher revenues from Asia.
A lot to look forward to
That's a lot to take in all at once, isn't it? Well, Crocs is making a serious effort to explore all avenues of growth possible as it looks to take the success of its brand forward. Watch out for a ton of new products as Crocs looks to boost its top line. Don't be surprised if you hear of more such deals this year.
We at The Motley Fool will keep you up to date on all the latest at the Colorado-based shoemaker. All you have to do is click here and add the stock to your watchlist.
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At the time this article was published Fool contributor Shubh Datta doesn't own any shares in the companies mentioned above. Motley Fool newsletter services have recommended buying shares of Nike. Motley Fool newsletter services have recommended creating a diagonal call position in Nike. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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