Published - May 30th, 2023 @ 10:30 AM (GMT+2 )
Crocs Inc. (NASDAQ:CROX) Outperforms Tech Giants in Stock Market
The newest stock market superstar- Crocs - may be tucked away in the corner of your closet or comfortably cushioning your feet right now. The Crocs Inc., a Colorado-based corporation, has been quietly outpacing some of the stock market's colossal entities over the previous half-decade, namely tech juggernauts such as Microsoft Corp (NASDAQ:MSFT), Meta Platforms Inc.(NASDAQ:META), and Amazon.com (NASDAQ:AMZN), Inc.
A High Yield Investment
This shoe manufacturer, previously deemed a fashion blunder, has been rewarding investors for the past five years. Imagine this - a $1,000 investment in Crocs back in April 2018 would currently be worth an astonishing $7,600.
Initially promoted for boating and outdoor pursuits, Crocs quickly developed an avid fan base due to their unmatched comfort, resilience, and unique aesthetic, captivating a wide demographic. Available in many colors, they are a favorite among professionals on their feet for extended periods, such as healthcare workers and culinary artists.
Crocs' Popularity and Market Appeal
In 2006, Crocs made a significant splash with its IPO, amassing a considerable $208 million, considered one of the most successful at that time. By 2012, the company was generating a revenue of $1.1 billion.
Fast forward to early 2022, and that figure had almost tripled, reaching a staggering $3.6 billion. The vast revenue growth can be traced back to Crocs' diversification into new footwear categories, like sandals, and fruitful collaborations with high-profile entities such as The Walt Disney Co. and Vera Bradley Designs Inc. for exclusive designs.
A Celebrity Favorite and Fashion Sensation
The foam clog creator has morphed into a fashion phenomenon, earning a spot in the hearts of celebrities such as Justin Bieber and Post Malone, reaping the benefits of their hard work.
Despite the turbulence in the broader market, Crocs' shares have been on a steady climb. The stock has witnessed an incredible 222% surge since its low point of $46.08 in July 2022. In the past year alone, the value of Crocs' stock has grown by about 93%. The successful acquisition of HEYDUDE for $2.5 billion has further bolstered the company's financial standing.
From Fashion Misfit to Stock Market Cinderella
From being perceived as the shoe industry's "ugly duckling", Crocs has metamorphosed into the stock market's "Cinderella" tale. This transformation has enthralled both investors and fashion enthusiasts, demonstrating that even the most unusual contenders can rise to the top.
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