It's ironic that while many people consider Crocs (CROX) to be a clunky, ugly piece of footwear, the company clocked $2.3 billion in sales at the end of 2021. Perhaps it's a reminder that comfort trumps fashion.
"Sales of clogs were particularly strong, increasing to 80% of total footwear revenues versus 72% in 2020," said Crocs Chief Executive and Director Andrew Rees during the fourth quarter earnings call.
The company's flagship pair "Classic Clog" had triple-digit growth in sales the Broomfield, Colorado company said. "It was a great year for the Classic Clog and Classic Lined Clog, taking the number one and number two spots for US holiday sales," added Rees.
The foam and plastic footwear were also a huge hit during the pandemic, possibly because no one could see what shoes one was wearing. Crocs are comfort food and people needed to be comforted during the pandemic.
The company sold a 100 million pairs of footwear last year including clogs, sandals, and Jibbitz, a decorative item that can be inserted into the holes in some Crocs to customize the shoes. Crocs' average selling price for 2021 rose nearly 12% to $22.27, the company added in the latest earnings call.
The shoe maker also completed its acquisition of Italian footwear company HeyDude in February, which is expected to add another $620 to $670 million in revenue to company's coffers.
The brand's strength lies in its easy to clean, comfy, and colorful range of shoes and sandals. But the clogs, in particular, are polarizing characters that often lend themselves to debates on social media about whether they are horrible or so bad that they're good.
In terms of collaborations, last year Crocs tied up luxury fashion brand Balenciaga for a high heel version of the shoe which received widespread criticism on social media.
The retailer also worked on a nature-inspired clog with Salehe Bembury priced at $85 a pair.
This next partnership is not how you would like to start your day.
Breakfast With a Side of Crocs
This may not be the ideal breakfast recipe.
The shoe maker seems to have gone one step further and a little more outlandish this year in its latest partnership with General Mills (GIS) and Foot Locker (FL).
The company has created cereal Cinnamon Toast Crunch, Trix, Honey Nut Cheerios, and Cocoa Puffs-inspired clogs that cost between $45 to $70.
Greenhouse, Foot Locker's initiative to work with young creators and brands on streetwear and sneakers, spearheaded this strange shoe collaboration.
The plastic footwear with holes in it comes with Jibbitz charms in the shape of berries, cereal brands, and cinnamon squares.
These eyesores are reportedly only available for purchase at footwear retailer Foot Locker for children and men. There will be more options available in July.
General Mills
This is not the company's first unusual food association. In 2020, Crocs launched clogs with a KFC theme and a fried-chicken fragrance, which promptly sold out.
Social media is responding to the cereal-inspired clogs with some wild reactions.
On Twitter, a user said he was disturbed to hear the news.
Others have called the pair ugly.
Another remarked that they smell like the cereal too.
Another user remarked that General Mills wants to get into every industry and with good reason. The packaged food giant recently tied up with B&G Foods to launch a cinnamon toast crunch spread to go beyond the breakfast cereal box.
Some users had an unexpected reaction to the new style.
