Full Description

Crocs, Inc. is a designer, manufacturer, distributor, worldwide marketer and brand manager of footwear for men, women, and children. Crocs shoes combine fun colors and designs and the Company manufactures a product offering that provides new and exciting molded footwear products that feature fun, comfort and functionality. The Company designs and sells an offering of footwear, apparel, gear and accessories that utilize its closed cell-resin, called Croslite. The Crocs product range is divided into three categories: everyday, style and sport. Its everyday product range is composed of fully molded products, which are closest to its core products and targeted widely to several distribution channels. Its style product range consists of more fashionable silhouettes targeted towards higher-end department stores. Its sport product range includes sport inspired products that offers a Crocs point of view for active end uses like boating, walking, and hiking. The Company sells its Crocs-branded products throughout the United States and in 128 countries.

Footwear

The Company has expanded its Crocs product line to over 270 models in 2008, including Ocean Minded, YOU by Crocs and Bite footwear models. The Company has introduced its SolesUnited program, the first-of-its-kind recycled footwear donation program that allows customers to give back their worn-out Crocs shoes to be recycled into new shoes which are then donated to people in need worldwide. It has established licensing agreements with Disney, Nickelodeon, Marvel, DC Comics and Warner Bros., and introduced a limited edition line of footwear and Jibbitz charms featuring characters as Cinderella, Ariel, Mickey Mouse, Sponge Bob Square Pants, Dora the Explorer, Spiderman and Batman.

It has introduced its Crocs at Work line that offers Crocs shoes targeted towards healthcare and food industry professionals. The Company has developed its Crocs Rx line, which offers five models: the Relief, the Silver Relief, the Cloud, the Silver Cloud and the Silver Fox, targeted towards consumers who require specialized footwear that provides relief from certain medical conditions, such as diabetes, plantar pain, heel pain, metatarsalgia, achy feet and post-op conditions.

The Company has entered into collegiate licensing agreements with various colleges and universities, and its sports licensing agreements with, among others, NFL, MLB, AVP and more recently, the Gaelic Athletic Association and Australian football leagues. Acquired Bite (www.biteshoes.com), an adventure driven designer and manufacturer of comfortable and supportive performance shoes and sports sandals sold worldwide in five categories, including, golf, adventure, healthy lifestyle, travel and water sports. The Company introduced YOU by Crocs (www.youbycrocs.com), a women's fashion line that combines the comfort of Croslite with 24 designs including various boots, slides, and high heels composed of suede, smooth napa leather, metallic leather and patent leather. All styles include the Soleful comfort foot bed, which is manufactured with Croslite. The Company acquired Ocean Minded (www.oceanminded.com), a designer and manufacturer of leather and ethylene vinyl acetate (EVA)-based sandals primarily for the beach, adventure and action sports market. Footwear sales made up 91.6%, of total revenues for the years ended December 31, 2008.

Apparel, Accessories and Gear

The Company expanded its clothing line and launched a new clothing line for boys, girls and men featuring Croslite material. It added a small amount of Croslite to the material to ensure that each piece is lightweight, durable, breathable and fade resistant. In addition to its footwear products, the Company owns Jibbitz (www.jibbitz.com), an accessory brand with colorful snap-on charms specifically suited for Crocs footwear. It expanded the Jibbitz product line to include a variety of charms in varying shapes and sizes, with designs, such as flowers, sports gear, seasonal and holiday designs, animals, symbols, letters and rhinestones. Jibbitz designs allow Crocs consumers to personalize their footwear. As of December 31, 2008, Jibbitz charm designs were available to consumers for personalizing their Crocs footwear.

The Company has also introduced several Crocs-branded accessory items that complement the styling, colors and image of its footwear. The backpacks and bags incorporate bright colors, Croslite shoulder pads and various holes for Jibbitz so the bags can be personally decorated.

The Company competes with Nike Inc., Heelys Inc., Deckers Outdoor Corp., Sketchers USA Inc., Wolverine World Wide, Inc., Macy's Inc., Nordstrom Inc., Dicks Sporting Goods Inc. and Collective Brands Inc.