Crocs was founded by Lyndon “Duke” Hanson, and George Boedecker Jr. to produce and distribute a foam clog,[4] whose design they acquired from Foam Creations, Inc. of Quebec City.[5] 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 the 200 pairs that they had produced were all sold.[6] Crocs has since sold 300 million pairs of shoes.[7] In June 2020, Crocs moved its headquarters from Niwot, Colorado to Broomfield.[8]
Crocs completed an initial public offering of its common stock in February 2006. It began trading on the NASDAQ Stock Market under the symbol CROX. On October 30, 2007, the stock dropped 24% when the company announced decreased revenue projections.
[9] On April 14, 2008, during the midst of the financial crisis of 2007–2008, the stock dropped 30% in after-hours trading after the company issued a press release in which they significantly decreased earnings estimates for the first quarter.
In the same statement they also said they would lay off its 600 Quebec City factory employees as retailers had been reducing orders, though about 100 sales and marketing positions would remain. “The retail environment in the U.S. has become increasingly challenging as consumer spending and traffic levels have slowed,” chief executive officer Ron Snyder said. During the financial crisis, CROX dropped to as low as $0.79 before rebounding ($15.50 by November 2010).[10] On October 18, 2011, Crocs stock suffered a single day drop of about 39.4% on lowered earnings and revenues forecast.[11]
In June 2013, Crocs PALLETS reported a 42.5% decrease in net profits from a year before. As a result, the stock fell 20.2% in one day.[12]
In December 2013, the hedge fund SAC Capital Advisors disclosed that it held a 5% stake in Crocs, just over a day after The Blackstone Group said it would invest $200 million in a convertible preferred stock offering that would allow the company to replace its CEO and buy back $350 million in stock. In a filing with the U.S. Securities and Exchange Commission, SAC Capital management said it had accumulated a 5% passive stake in Crocs PALLETS
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