Crocs, Inc. is making a resurgence

After a series of struggles, most recently an abysmal fourth quarter of 2016, Crocs, Inc. and its iconic foam clog are making a comeback, the Washington Post reports.

The company posted a 28.4 percent year-over-year increase in net profit over the first six months of 2017, and according to the Post. Foot traffic in Crocs stores jumped 12 percent during the back to school season.

Founded in Niwot, CO in 2002, Crocs quickly jumped to prominence (or, some might say, infamy) around the world. Former U.S. president George W. Bush, actor Al Pacino, and former model Brooke Shields were all among the shoe’s early adopters, the Post says.

From 2003 through 2007, the company’s annual revenue grew from $1.17 million to $847.35 million.

But in 2008, amidst the recession, Crocs suffered its first annual revenue decrease since 2002, lost over $185 million and, according to the Post, laid off 2,000 workers. A $67.7-billion annual loss followed in 2009, but the company returned to profitability in 2010 and reported continuous profit growth from 2010-2012.

From 2012 to 2013, though, net income declined 92 percent.

In December 2013, Blackstone Group LP invested $200 million in Crocs. The company installed a new permanent CEO, Gregg Ribatt, the following year.

But the bottom line continued to drop. In 2014, Crocs posted a net loss of $4.9 million. The following year, the company lost over $83 million.

In 2016, profits began moving in a positive direction. Crocs cut its annual loss by 80 percent to $16.5 million.

But, the company lost $44.5 million in the fourth quarter of the year.

Back in March, in conjunction with the release of the earnings results for the fourth quarter of 2016, the company announced plans to close almost 160 stores and appointed then-president Andrew Rees to replace Ribatt as CEO.

Since, Crocs has recovered, reporting net income of $11 million in the first quarter of 2017—a 7.8 percent year-over-year increase—and of just under $22 million in quarter two—a 37.8 percent year-over-year spike.

“Crocs is starting to turn itself around, even in these very difficult times,” said Steven Marotta, an analyst at CL King & Associates, per the Post. “This is a company that has successfully gone back to the basics.”

Crocs discontinued a number of unpopular lines, the Post says, and is redoubling its focus on its flagship product, the foam clog.

That shoe, which sells for $35 a pair, now accounts for half of the company’s sales, according to the Post. “The classic clog has re-emerged as our hero,” said Crocs’ chief marketing officer, Terence Reilly, per the Post. “Certainly in 2017, there’s been a resurgence.”

The signature Crocs, which the company originally marketed as boating shoes, are slip resistant and easy to clean, and as a result, have garnered popularity amongst medical professionals and restaurant workers, the Post says. Targeting the latter group, the company has developed classic Crocs featuring prints of eggs and bacon, sushi, and chili peppers.

The culinary angle is one of a number of new augmentations to the classic shoe. Others include glitter-covered Crocs, and Crocs bearing prints of Batman, Spider-Man and Minnie Mouse.

“New colors and prints are selling well,” Rees said in last month’s earnings call, according to the Post. “We’re striking the right balance of comfort and style, and consumers are responding favorably.”

In December 2016, Crocs signed Drew Berrymore as a spokesperson, and in August, Berrymore agreed to collaborate with the company to create two Crocs designs. The first will launch next February; the second will appear next May.

Wrestler John Cena signed on with Crocs in June.

Both celebrities, along with a few others, are promoting Crocs as part of the Come As You Are campaign, which the company calls a “celebration of the rebellious, the impossible to categorize, the uniquely defined in all of us.”

Crocs may not be cool, but that’s exactly what so many new adopters find cool about them. The new marketing campaign is aimed at the alternative crowd, but the appeal is so great that Crocs are climbing back into the mainstream.

The shoe made three appearances at London Fashion Week, the Post says. Fashion designer Christopher Kane, a long-time proponent, featured an accessorized version of the shoe—replete with mink fur and gems—at his Spring 2018 show.

“Whether or not they’re actually cool — well, that’s up for debate,” said Cameron Peebles, chief marketing officer of inMarket, per the Post. “But our data shows that they’re popular again.”

Featured image via Pxhere

New York Fashion Week: Reclaiming American Culture One Stitch at a Time

The American fashion industry is struggling. In the past year, a number of formerly iconic American clothing retailers have shut their doors. True Religion Apparel, Inc. became the latest casualty earlier this month.

Such brands are being pushed out of the market by foreign enterprises like H&M of Sweden and Spain’s Zara, which employ a “fast fashion” business model in which clothes move as quickly as possible from runways to store shelves so that companies can keep up with ever-changing consumer tastes.

But New York Fashion Week: Men’s, which kicked off Monday, may provide a much-needed spotlight that will reestablish US designers as major players in the global fashion scene. Over 65 fashion shows will take place throughout New York this week, showcasing the work of many young American designers eager to carve out space for themselves among fashion’s elite.

Many of the outfits showcased will be available on a “see now, buy now” basis, meaning viewers will be able to purchase them immediately. It is the ultimate in fast fashion: before a product even hits the shelves, a trend-setting consumer can have it in his/her hands.

Many designers are using New York Fashion Week as a platform by which to reclaim each of their unique American identities amidst a political climate they feel threatens to compromise those identities.

Julian Woodhouse, a renowned clothing designer who also happens to be a gay, African-American Army veteran, says much of the inspiration for his “Field Day” collection is born out of uneasiness with the political state of affairs in the USA.

“I called the collection ‘Field Day’,” he told Guy Trebay of the New York Times, “because I was feeling so heavy about political shifts.”

Said collection juxtaposes elements of traditional, conservative American culture against backdrops of chaos and disarray. In one outfit, a pair of suspenders is appended to a pair of cargo shorts and left hanging off of the model’s shoulder. Another outfit features “overalls with pegged ankles and bibs cut low for efficiency of escape,” Trebay reports.

The overalls could be taken as a symbol of outdated aspects of American culture, from which Woodhouse is inviting the viewer to escape. At the same time, Woodhouse’s African-American ancestors would have had far more pressing and concrete motivations for escaping from actual pairs of overalls.

Taofeek Abijako, an American of Nigerian descent, orchestrated a show that, in his words, demonstrates how “the African natives adopted European styles and made them their own.”

Abijako’s collection featured brightly colored, oversized clothing that Trebay says “[looked] as though borrowed from an older brother or else…pulled from the bottom of a prop trunk.”

Of course, African “natives” were forced to, in a sense, “borrow” European culture, but they also transformed it, made it fit them. So it’s not surprising that the baggy, belted trousers, are “tailored close to the leg” (Trebay’s words), for instance: they fit, even though they don’t.

Events like New York Fashion Week take place throughout the year in New York, London, Milan, Paris and Miami. Trebay admits that, from one perspective, the New York event is merely “continuation of a seemingly unending loop of clothes” going on tour throughout the world.

But in terms of the impact it could have on the American fashion industry and the American political situation, New York Fashion Week is uniquely American, just like the designers it showcases.

Hopefully, struggling American apparel companies are keeping an eye on the proceedings at New York Fashion Week, looking for cutting-edge designers who can launch their brands back to relevance. If not, maybe some of America’s political figures are keeping an ear tuned to the subtle undercurrents of social protest that run beneath each outfit.

Ways To Maintain A Small Business Culture

There are many small business cultures that are fueling the industry at large. Small business is a unique concept that is starting to lose credibility as employment standards and growth are escalating into a corporate-based foundation. However, there are various aspects of a trivial business that are beneficial to a company’s functioning.

According to Staples, a recent online survey discovered that employees at companies with 100 or fewer employees are actually happier while at work. These results are a huge plus for small business owners, but how do they maintain this environment when the culture is always pushing for bigger and better?

The trick to holding onto this refined feel is through a leader’s constant reinforcement of what is important. They have to hold their head above water at all times and communicate on a personal level.

Eric Thome, the president and CEO of Folbot, said, “Plan for social time to aid and enable interaction between co-workers without the stress of output and deadlines. And it’s not always bad to give the team time to work and talk without the boss around. Build a culture that sustains itself even without your presence,” according to The Wall Street Journal.

The ability for a business to communicate its original ambiance speaks volumes about its ability to acclimate to changes and fine-tune its policies. “Training someone new takes time and effort from everyone, and this should be seen as an investment in your growth. Though work flow will be disrupted as instructions are created and repeated, learning happens as mistakes are made and corrected,” Folbot stated.

A small business is so much more personal than a large corporation that it must build on its dissimilarities in order to avoid assimilation of contrasting policies. Commerce may be expanding on a global level, but that does not mean the happiness of the employees has to be jeopardized.