Crocs Are the World’s Biggest Fashion Trend, So Buy CROX Stock

Mark A. Carlson

Fashion embracing comfort over style is simply a byproduct of this secular, lifestyle pivot towards function over form that’s been happening for decades. It’s not going anywhere anytime soon. For the foreseeable future, consumers are going to keep pivoting towards choosing products and services which put function first, and form second.

As such, the “ugly” fashion trend has long-term staying power. It will stick for the next 10+ years.

The “It” Shoe in Ugly

The emergence and staying power of the “ugly” fashion trend is greats news for Crocs and CROX stock.


Because in a fashion world where consumers are valuing function over form, Crocs’ signature clogs are the “It” shoe.

Those signature clogs are awfully comfortable. They are exceptionally durable and multi-purpose. They are usually sock-free, and can be worn with anything from workout clothes to a suit (yes, even a suit). Plus, they retail for only $40 to $50, making them one of the most affordable shoes in the market, and an absolute steal for all the utility they provide.

From head to toe — or, perhaps more accurately, from heel to toe — Crocs’ signature clog is the quintessence of function over form.

And it’s not like these shoes are that “ugly” anymore. Crocs has worked tirelessly to improve the look of its signature clogs through different collaborations, unique colorways and personalization options — to the point where they are appealing enough to attract a slew of enormous celebrity endorsements.

Drew Barrymore launched a collaboration with the brand back in February 2018. Post Malone jumped on board the Crocs train in late 2018, and has launched multiple collaborations with the brand ever since. Zooey Deschanel and Natalie Dormer headlined a huge Crocs marketing campaign in early 2019. In mid-2019, country star Luke Combs launched a collaboration with Crocs.

And, most notably, Justin Bieber — one of the most widely followed and influential pop stars in the world — recently released an Instagram Post which strongly implies that a Bieber x Crocs collaboration is coming this holiday season.

Overall, Crocs has all the momentum in the world right now because of the emerging “ugly” fashion trend, and seeing as this trend has long-term staying power, Crocs will likely maintain all of this favorable momentum for many, many years.

Big Upside Potential for Crocs Stock

The upside potential in CROX stock over the next several years is truly enormous.

At last check, Crocs has a $3.2 billion market cap.

Nike has a $200 billion market cap. Lululemon has a $43 billion market cap. Adidas (OTCMKTS:ADDYY) has a $63 billion market cap.

I’m not saying Crocs will ever get as big as those companies, because Crocs only sells shoes (while those brands sell all sorts of apparel).

But I am saying that Crocs — as a giant in an emerging fashion trend with widespread appeal and long-term staying power — will be worth a lot more than $3 billion one day.

How much more?

Well, back at its peak in 2007, Crocs owned about 1% of the U.S. footwear market. Given current “ugly” fashion tailwinds, Crocs could climb towards that peak market share on a global level within the next few years.

Global footwear sales are projected to hit $570 billion by 2025. One percent market share implies $5.7 billion in revenue. Nike stock trades around 3.5X sales. Based on that multiple, Crocs could have a ~$20 billion market cap in five years — up 6-fold from current levels.

To that end, I reiterate: CROX stock still has huge long-term upside potential.

Bottom Line on CROX Stock

The bottom line here is really simple.

As Crocs continues to turn into the next big thing in fashion thanks to a secular pivot among consumers towards valuing functionality over form, Crocs’ sales and profits will continue to surge higher, as will CROX stock.

It’s that simple.

So buy CROX stock today. Hold for the next few years. Multi-bagger returns are entirely possible.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

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