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Here's How Much You'd Have If You Invested $1000 in Crocs a Decade Ago

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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.

In the fourth quarter of 2023, the company updated its reportable operating segments to (i) Crocs Brand and (ii) HEYDUDE Brand.

Crocs Brand (76% of 2023 revenues): The brand is well recognized for its unmistakable iconic molded clog silhouette, offering simple design aesthetic, along with modern comfort. It has expanded into a wide variety of casual footwear products.

HEYDUDE Brand (24%): The brand offers shoes with a versatile silhouette with many wearing occasions that focus on casualization, comfort-led functionality and personalization. It uses leading technologies like flex-and-fold outsole and ergonomic insole.

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.

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

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Crocs a decade ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in October 2014 would be worth $11,273.23, or a 1,027.32% gain, as of October 7, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 192.24% and the price of gold went up 110.55% over the same time frame.

Analysts are forecasting more upside for CROX too.

Shares of Crocs have increased and outpaced the industry year-to-date. The stock’s rally is supported by solid consumer demand for the Crocs brand, accompanied by effective pricing actions and lower freight costs. The company has been experiencing strength in clogs, sandals and personalization for a while. Strong demand trends led to impressive results during second-quarter 2024, which marked the 17th consecutive quarter of earnings beat. It also remains on track with its long-term strategy and key initiatives to deliver sustainable growth. For 2024, the company anticipates revenue growth of 3-5% at constant currency from the year-ago levels, with a 7-9% increase in the Crocs brand revenues. Management anticipates gross margin to expand year over year during 2024, with gross margin growth across both the Crocs and HEYDUDE brands.

The stock is up 9.33% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2024. The consensus estimate has moved up as well.

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