Jibbitz: A Lucky Charm for Crocs?
Few footwear choices have garnered such polarized opinions as Crocs ($CROX), whose signature foam clogs have developed loyal fans among medical professionals and home gardeners alike. In recent months, the shoe company has skyrocketed in popularity with Gen Z shoppers in particular, perhaps in part due to celebrity endorsements and even fast food partnerships. In any case, Crocs reported a >60% increase in sales last quarter, and the company expects yet another uptick this year.
Amidst the high-profile marketing hype, there may be a smaller—yet crucial—factor into Crocs’ success: Jibbitz. These decorative shoe charms, designed specifically for Crocs footwear, come in a variety of themes and allow shoppers to completely personalize their shoes. In Crocs’ 4Q’20 earnings call, CEO Andrew Rees noted an increase in Average Selling Price, which the company attributed to fewer promotions and discounts, as well as “greater charms per shoe.” The Jibbitz craze seems only to be picking up more momentum this year, as Rees followed up in their 2Q’21 earnings call:
Jibbitz sales were once again exceptional, more than tripling for the quarter versus last year. The global personalization megatrend continues.
CROX 4Q 2021 Earnings Call
Looking into our Spend Data, we found that ticket size per transaction has indeed increased, seemingly corroborating Crocs’ story of customers spending more at checkout. Only time will tell whether this is a short-lived fashion fad, or if charmed-out Crocs are here to stay.
