Back to top

Image: Bigstock

Here's How Much a $1000 Investment in Crocs Made 10 Years Ago Would Be Worth Today

Read MoreHide Full Article

For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Crocs (CROX - Free Report) ten years ago? It may not have been easy to hold on to CROX for all that time, but if you did, how much would your investment be worth today?

Crocs' Business In-Depth

With that in mind, let's take a look at Crocs' main business drivers.

Founded in 1999 and based in Niwot, CO, Crocs, Inc. is one of the leading footwear brands with its focus on comfort and style. Famous for its iconic clog material, Crocs’ simple design and great comfort was an instant hit among consumers. The company offers a wide variety of footwear products including sandals, wedges, flips and slide that cater to people of all age.

Most of the company’s shoes are made up of Croslite, which comes with qualities including soft, comfortable, lightweight, non-marking and odor-resistant. Its other iconic product “The Classic Clog” for adults and children offers all-day comfort. It is now using the Croslite technology in its LiteRide collection, which features proprietary foam and is soft, lightweight and resilient.

The company operates in three geographic regions:

Americas (46.3% of FY22 Revenues): This includes the United States, Canada and Puerto Rico.

Asia Pacific (13.3% of FY22 Revenues): This includes Korea, China, Japan, Singapore, Australia and Hong Kong.

EMEA (15.4% of FY22 Revenues): This includes Russia, Germany, France, Austria, and The Netherlands.

Crocs’ products are available in more than 80 countries and are distributed via wholesale, retail, and e-commerce platforms. The wholesale channel consists of domestic and international multi-brand retailers, e-tailers, and distributors while the retail channel includes company-operated stores. Lastly, websites and third-party marketplaces form its e-commerce operations.

Moreover, Crocs has entered into licensing partnerships with Disney, including Marvel and Lucasfilm, Universal Studios, Nintendo, and Warner Bros, which further enhances its reach and popularity.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Crocs, if you bought shares a decade ago, you're likely feeling really good about your investment today.

According to our calculations, a $1000 investment made in March 2014 would be worth $8,401.86, or a 740.19% gain, as of March 12, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

The S&P 500 rose 174.03% and the price of gold increased 53.31% over the same time frame in comparison.

Going forward, analysts are expecting more upside for CROX.

Shares of the company have increased and outpaced the industry in the past three months. Crocs is gaining from solid consumer demand for the Crocs brand, supported by effective pricing actions and lower freight costs. This led to impressive results for fourth-quarter 2023, wherein the bottom line surpassed the Zacks Consensus Estimate for the 15th consecutive time. In addition, the company has been experiencing strength in clogs, sandals and personalization, as all three grew double digits during 2023. Crocs has been witnessing a decline in inbound freight costs, which have been contributing to gross margins. For the year, the company anticipates year-over-year revenue growth of 3-5% at constant currency. Revenues for the Crocs brand are expected to rise 4-6% year over year. However, the company has been witnessing higher costs for a while.

The stock has jumped 15.10% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2024; the consensus estimate has moved up as well.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Crocs, Inc. (CROX) - free report >>

Published in