U.S. Crocs shares have risen 1,000% since the pandemic started
This week, stocks of U.S. shoemaker Crocs surpassed the $183 per stock mark. This has boosted the company's growth since the start of the pandemic by 1,000%. The company's capitalization surpassed the $10 billion mark.
Analysts note that the reasons for such a success were several simultaneous factors:
First, the U.S. company was initially lowly quoted in the market, as there are larger companies with an already established production, logistics, and marketing system. For this reason, originally, it was predicted to be a slight increase. Still, the quarterly reports consistently beat expectations. The latest report, published on October 21, showed a double increase in sales to $626 million.
The second thing is that Crocs originally sold sabots, rubber shoes for the beach and home. However, because of the pandemic, the shoes became very popular among healthcare workers, who could use them with no worries that the shoes would deteriorate due to chemical treatments.
Finally, amid Nike's announcement that it would suspend shoe supplies to U.S. retail stores until the summer of 2022, the stock of all its competitors went up.
The company itself continues to increase production and plans to double its sales by 2026, reaching $5 billion.