Manufacture and patents
In June 2004, Crocs purchased Foam Creations and
their manufacturing operations to secure exclusive
rights to the proprietary
resin "croslite", which is made using
ethylene vinyl acetate.
The foam forms itself to a wearer's feet and offers
purported medical benefits, according to a number
Crocs holds one patent covering various utility
aspects of its footwear, U.S. Patent No.
6993858 B2 issued February 7, 2006, and three
design patents covering various ornamental aspects,
U.S. Patent Nos.
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
As of December 31, 2007, they have applied to register
Crocs and the Crocs logo as trademarks in over 40
jurisdictions around the world, including the U.S.,
but such applications have not been approved and
are currently pending. In addition, they have recently
extended the scope of their trademark registrations
and applications for both the Crocs mark and logo
to cover non-footwear products such as sunglasses,
goggles, knee pads, watches, luggage, and some of
their internet sales activities.
Crocs come in a variety of styles. They are usually
manufactured in their own facilities in Canada and
Mexico, as well as contract manufacturers in Italy,
Romania, and China. In 2008, they closed the Canadian
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.
Crocs also sells other fashion accessories. It has
released a line of purses that are also produced
in a wide array of colors.
Crocs also recently entered the golf shoe marketplace.
Crocs acquired golf shoe manufacturer, Bite Footware
and have introduced a croc styled pair of golf shoes,
the Crocs Ace.
Health and safety
The Centers for Medicare and Medicaid Services has
approved a model of Crocs with molded insoles as
help wearers avoid foot injuries.
Crocs are certified by the U.S. Ergonomics Council
and the American Podiatric Medical Association.
Footwear such as Crocs and
under scrutiny in 2006 when children suffered injuries
after the shoes became caught in escalator mechanisms.
This was due to the softness of the shoe's material
combined with the relatively smaller size of children's
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.
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
Vienna's city hospitals said they were banning popular
Crocs plastic clogs, often worn by nursing staff,
as they may pose safety risks for patients.
On October 3, 2006, Crocs purchased
Jibbitz, a manufacturer of accessories that
snap into the holes in Crocs, for $10 million. On
July 30, 2007 Crocs agreed to buy Bite Footwear,
based out of Redmond, Washington
On January 31, 2007, Crocs acquired substantially
all of the assets of Ocean Minded
for $1.75 million in cash, plus a potential earn-out
of up to $3.75 million based on Ocean Minded achieving
certain earnings targets over a three year period.
Ocean Minded is a designer and manufacturer of high
quality leather and EVA (Ethylene Vinyl Acetate)
based sandals primarily for the beach, adventure
and action sports markets. They recorded $600,000
in customer relationships and other identifiable
intangible assets and $953,000 in goodwill on the
date they acquired Ocean Minded.
On April 1, 2008, the Company acquired substantially
all of the assets of Tidal Trade, Inc. ("Tidal
Trade"), the Company's third party distributor
in South Africa, for $4.6 million. The Company recorded
$1.4 million in customer relationships on the date
of acquisition. As part of the acquisition, the
Company repurchased inventory previously sold to
Tidal Trade and accordingly recognized a reduction
of revenue of approximately $2.1 million.
Also in April, 2008, the Company acquired substantially
all of the assets of Tagger International B.V. ("Tagger"),
a private limited liability company incorporated
under the laws of the Netherlands that manufactures
messenger bags. Tagger was partially owned by the
Managing Director of Crocs Europe B.V. The Company
acquired all of the assets of Tagger for $2.0 million,
of which approximately $90,000 was assigned to inventory
and the remaining $1.9 million was assigned to the
value of the Tagger trademark on the date of acquisition.
Later that year, in June, the Company decided to
liquidate Fury, Inc. ("Fury") after efforts
to sell the entity were unsuccessful. As a result,
the Company wrote off $250,000 related to the remaining
customer relationships intangible asset and trademarks
in the three months ended June 30, 2008.
Fashion, media and stock
While some regard Crocs shoes as comfortable and
colorfully decorated, others see them as a fashion
disaster, and a subculture 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."
blog named "I Hate Crocs dot com."
follows Croc opponents periodically.
There is a group on Facebook, which has over 1.4
million members, that is dedicated to eliminating
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
and The Daily Show "Senior Public Restroom
Correspondent" Rob Corddry, following up on
the Senator Larry Craig June 2007 lewd conduct arrest, "reported"
that anyone wearing Crocs is signalling "anything
Commentators have noted that social networking sites
are collectively allowing individuals to share their
distaste for Crocs.
Crocs are #6 on the "Worst" list of Maxim's "The
10 Best & Worst Things to Happen to Men in 2007."
Yet in 2008, Crocs was ranked the number one casual
brand in the athletic specialty sporting goods channel
for men, women, and children by the NPD Market Research
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
 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.
On October 10th 2008, six months after the sharp
fall of April 14th 2008, the share price was $1.90
having steadily fallen throughout the Credit Crunch
Crocs Inc. Q4 2007 Earnings Call Transcript
- Seeking Alpha
Fashion Attack, Elizabeth Wellington,
Philadelphia Inquirer, 2007-07-05. Retrieved
crocfans.com CrocFans website.
Hate Crocs dot com".
Retrieved on 2007-08-13.
Maniscalco, Michelle (March 2007).
Web-exclusive: Patent check: What's in a
Croc?". Injection Molding Magazine.
Retrieved on 2007-07-31.
US patent 6993858
Such A Croc"". Washington
Post. August 1, 2006. pp. HE01.
Retrieved on 2007-08-13.
Form 10-K for Crocs Inc. (archive) Crocs
2006 Annual Report. Yahoo!Finance. March
31, 2006. accessed 2007-04-29.
CROCS, INC. Form:10-Q] Filing Date:8/14/2006.
Crocs annual SEC Report". Crocs/SEC.
Retrieved on 2008-11-26.
Crocs rakes in revenue from "Ugly"
shoes". Business Pundit. 2008-06-11.
Retrieved on 2009-06-04.
gives boot to Quebec City plant".
CBC News. 2008-04-25.
Retrieved on 2009-06-04.
Crocs get a lift from diabetics as medical
agency OKs footwear
Crocs:Healthy or just comfy Heather
Hatfield, WebMD, accessed on November
Crocs can pose a danger on escalators
ABC News. Kate Snow, October 5, 2006,
Experts recommend caution while wearing
clogs WMC-TV Memphis Tennessee.
September 21, 2006, accessed 2007-04-19.
Holey Crocs get the boot at Regional Hospital
Mary Garrigan, Rapid City Journal,
February 1, 2007, accessed 2007-04-18.
Swedish hospital to ban 'Foppatoffels'
The Local(Sweden), April 18, 2007,
accessed on April 20, 2007.
Plastic clogs disrupt machinery in Swedish
hospital Guardian Unlimited (AP),
April 19, 2007, accessed April 19, 2007.
Vienna hospitals ban Crocs Mail &
Guardian Online, August 12, 2008, accessed
August 13, 2008.
will buy Wash. shoemaker". Denver
Business Journal. 2007-07-30.
Retrieved on 2008-08-04.
Minded website". Ocean Minded.
Retrieved on 2008-11-05.
dedicated to eliminating the shoe
Real Time with Bill Maher (HBO).
No. 1, season 10. 51.5 minutes
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."
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."
Croc On; Rob Walker, New York Times
10 Best and Worst Things to Happen to Men
Retrieved on 2007-12-25.
summary". NPD Market Research Group.
Retrieved on 2009-06-04.
CROX: Basic Chart for CROCS, INC. - Yahoo!
Crocs Shares Plummet on 3Q Results;
Yahoo Finance News(AP), 2007-11-01
TheStreet.com : Crocs Gets Stomped
| Retail | CROX
Yahoo Business:Crocs Ahead of the bell
UPDATE 2-Crocs outlook lags Wall Street,
shares tumble | Markets | Markets News |
Crocs Eats Shorts - Forbes.com