BROOMFIELD, Colo., Crocs, Inc. (NASDAQ: CROX), a world leader in innovative casual footwear for women, men, and children, today announced that it will present at the UBS Global Consumer and Retail Virtual Conference on Wednesday, March 10, 2021 at 3:00 pm ET.
A live broadcast of the Company’s presentation may be found on the Investor Relations section of the Crocs website, investors.crocs.com. A replay of the webcast will remain available on the website for thirty days.
Inc. (Nasdaq: CROX) is a world leader in innovative casual footwear for women, men, and children, combining comfort and style with a value that consumers know and love. The vast majority of shoes within collection contains Croslite
Crocs, Inc. is an American company based in Niwot, Colorado that manufactures and markets the Crocs brand of foam clogs.
The company has since established a considerable following with American middle school and high school students, with many opting for Crocs to use as school shoes for the school day.
Crocs was founded by Lyndon “Duke” Hanson, and George Boedecker Jr. to produce and distribute a foam clog, the design of which was acquired from a company called Foam Creations. The shoe was originally developed as a boating shoe. The first model produced by Crocs, the Beach, was unveiled in 2001 at the Fort Lauderdale Boat Show in Florida, and sold out the 200 pairs produced at that time. It has since sold 300 million pairs of shoes.
Manufacture and patents
In June 2004, Crocs purchased Foam Creations and their manufacturing operations to secure exclusive rights to the proprietary foam resin called Croslite. Croslite is a closed-cell resin, described by third parties as an injection-moulded EVA foam. The foam forms itself to a wearer’s feet and offers purported medical benefits, according to a number of podiatrists. Crocs holds one patent covering “breathable workshoes and methods for manufacturing such”, U.S. Patent No. 6993858 B2 issued February 7, 2006, and three design patents covering various ornamental aspects, U.S. Patent Nos. D517788, D517789, and D517790 issued on March 28, 2006.
As of 2007, the company had applied to register “Crocs” and the Crocs logo as trademarks in over 40 jurisdictions around the world, including the U.S.; many such applications were pending approval. Crocs also 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 are made in a variety of styles and colors. The Classic 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. Thus there are different styles for each season.
Crocs also sells other fashion accessories. Jibbitz are decorations that can be clipped to the ventilation holes in the shoes. These include designs, mainly aimed at children, which feature Disney characters. The company has also released a line of purses in a variety of colors.
A “Fuzz Collection” with removable woolly liners extend the brand’s range to winter wear.
In 2008, the company entered the golf shoe marketplace, acquiring golf shoe manufacturer Bite Footwear. A Croc-styled pair of golf shoes, the Ace, was introduced.
In 2020, in response to the coronavirus pandemic, the company launched “A Free Pair for Healthcare” offering healthcare workers a free pair of the comfort shoes. Additionally, Crocs sent out 100,000 pairs of shoes to hospitals to be distributed to staff.
Imitations and counterfeits
Crocs announced in 2006 that it filed complaints with the United States International Trade Commission (ITC) and the United States district court against 11 companies that manufacture, import or distribute products, called “croc-offs”, that Crocs believes infringe its patents. Seizures of fake Crocs occurred in 2007 in the Philippines and Denmark, and were under litigation in South Africa. In 2010, the United States Court of Appeals for the Federal Circuit held that Crocs’ design patent had been infringed.
In 2007, the U.S. Consumer Product Safety Commission requested a voluntary recall of Crocs-like clogs due to a potential choking hazard involving detaching plastic rivets.
Crocs-like brands include Airwalk, Crosskix, Poliwalks, USA Dawgs/Doggers, Veggies, among others. Versions of the Croc style clogs have appeared in children’s fashion catalogs, usually under their own name brands or as no names. Other knock-offs are in discount stores, amusement park stores, beach stores, department stores, and superstores.
Health and safetY
Some Crocs shoes were tested and recommended by the U.S. Ergonomics company in 2005 and were accepted by the American Podiatric Medical Association in 2009. In 2008, the U.S. government Centers for Medicare and Medicaid Services approved a model of Crocs with molded insoles as diabetic footwear, to help reduce foot injuries.
Footwear such as Crocs and flip-flops came under scrutiny in 2006 in the U.S. and 2008 in Japan when children suffered injuries after the shoes became caught in escalator mechanisms. This was due to the soft shoe material combined with the smaller size of children’s feet. In 2008, Japan’s Ministry of International Trade and Industry, after receiving 65 complaints of injuries, requested that Crocs change its design.
Internationally, some healthcare facilities introduced policies in 2007 regulating Crocs. Rapid City Regional Hospital in South Dakota changed its dress code to prohibit the sandal variants and those with holes, citing safety concerns, but allowed closed-top “Professional” and the healthcare-focused “Rx” Crocs to be worn. Over 100 hospitals in Canada were advised to implement similar policies. Blekinge and Karolinska University hospitals in Sweden banned the wearing of “Forsberg slippers” (Foppatofflor)by staff, due to high voltage static electricity buildup which was observe]to interfere with electronic equipment.City hospitals in Vienna, Austria announced banning Crocs, often worn by nursing staff, to comply with antistatic requirements.
announced the Fuse and two others in 2009, formulated to dissipate static electricity in accordance with European standard EN ISO20347:2004 (E), for use in the medical sector.
In October 2006, Inc. purchased Jibbitz, a manufacturer of accessories that snap into the holes in Crocs shoes, for $10 million, or $20 million if Jibbitz met earnings goals.
In January 2007, acquired assets of Ocean Minded] for $1.75 million in cash, plus potentially $3.75 million based on performance. Ocean Minded makes and ethylene-vinyl acetate-based footwear.In July 2007 Crocs agreed to buy shoe- and sandal-maker Bite Footwear, based in Redmond, Washington for $1.75 million, or up to double that based on earnings results.
In April 2008, Crocs acquired 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. Crocs repurchased inventory previously sold to Tidal Trade and accordingly recognized a reduction of revenue of approximately $2.1 million. Also in April the company acquired Tagger International B.V. (“Tagger”), a private limited liability company incorporated under Dutch law that manufactures messenger bags. Tagger was partially owned by the Managing Director of Crocs Europe B.V. The company acquired all Tagger assets for $2 million – $90,000 for inventory and $1.9 million for the Tagger trademark. Later in June, Crocs liquidated Fury, Inc. two years after acquiring it after efforts to sell it off were unsuccessful. As a result, wrote off $250,000 related to the remaining customer relationships, intangible assets and trademarks over three months.
By PR Newswire