Rachel Warren

They did collabs with celebrities like Justin Bieber and Post Malone.

But apparently it works.

it's a very specific type of style right i mean they've also done collaborations with various food brands i think there was a kfc pair of crocs guys so sort of all across the map but going into the pandemic they definitely were growing again as a business obviously the pandemic era sort of revitalized the growth of crocs i think with so many people staying at home for long periods the idea of a comfortable foam clog that you could wear both inside and out

It was something that resonated with consumers.

I do think that's something that also really goes back to the strategy we've seen under CEO Andrew Rhys, really going back to the core and original products that the company was known for in its very early days.

John mentioned the difficulties they've had with HeyDude.

They've been working to really manage that excess inventory.

Crocs, like many other companies in the space, they've been dealing with the impact of tariffs on goods.

It's a competitive market, and there's also now the introduction of tariffs that are compressing margins.

What I will note is that while we've seen a decline in North American sales, Crocs has seen really strong double-digit growth in some of their newer international markets, China, Western Europe.

That's been really interesting to see.

That's partially offsetting some of the domestic softness.

They do maintain, compared to the broader industry, pretty strong margins.

They've been really trying to actively manage their capital structure.

And they are still the number one footwear brand on TikTok shop in the U.S.

So there seems to be a way in which this is resonating with the newest generation of shoppers.

So I wouldn't count Crocs out.

I'm a maybe.

I'm maybe not as optimistic as John, but I like the business.

I'd like to see them succeed.