Crocs profits break records, including through acquisition of brand Hey Dude

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 Crocs profits break records, thanks in part to acquisition of Hey Dude brand

Crocs expects revenue to rise to record levels following the purchase of obscure Italian shoe brand Hey Dude, beloved by the buzzer generation.

Hey Dude has grown by 70% in 2022, with sales of about $1 billion, according to Insider.

CEO Andrew Rees said at the annual ICR conference that Crocs expects to report a record 2022 revenue of 3. $55 billion.

 Crocs' profits break records, thanks in part to acquisition of Hey Dude brand

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Most of the income came from the brand of the same name. But the 2021 acquisition of Crocs Hey Dude was profitable. Hey Dude now accounts for about a third of all Crocs sales. Shoe company Crocs is also forecasting 13% revenue growth this year.

Crocs has long been synonymous with comfort, and its clogs are available in dozens of colors and variations. Like most sneaker brands, the brand is promoting a successful collaboration with music artist Bad Bunny and designer Salehe Bemberi. But it wasn't just the Crocs brand that led the company to more than 50% revenue growth in 2022.

Crocs acquired Hey Dude in late 2021, much to Wall Street's dismay. But Hey Dude, the brand beloved by the buzzer generation, is up 70% and brought in about $1 billion in sales last year. About a third of Crocs' sales now come from Hey Dude shoes, according to the company.

– Acquisition of Hey Dude – we are delighted with this transaction. It was a lot of work and the results are beyond expectations, — said Andrew Rees. – When we bought the company, we expected revenue in 2022 to be between $700 million and $750 million, and now we have reached $1 billion. Hey Dude is growing faster than other brands.

 Crocs tops record, thanks in part to acquisition of Hey Dude brand

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The growing popularity of Crocs among the buzzers was caused by several trends and tendencies, one of them – the individual face of each pair of shoes.
– If you look at young consumers, they are really looking for a product that, on the one hand, is different from everyone else, and on the other hand, allows you to be like everyone else, — Rees said. – So it's important to give them the opportunity to buy a recognizable iconic silhouette, like a pair of Crocs, but personalize theirs with Jibbitz.

Rees also attributes the company's record earnings to consumer trends accelerated by the pandemic, such as transition to more comfortable casual shoes.

— These are not the trends that exist today, but will disappear tomorrow, — Rees said. – These are the trends that have determined consumption for a number of years, and we think that they will be relevant for a long time to come.

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