Brooke Shields took the Tonys by storm on Sunday night.
The actress was all over the news following the New York awards ceremony that recognizes excellence on Broadway.
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And what was all the hubbub about?
Her acting? Her singing? Those Calvin Klein ads from the Eighties? No , no and no again. The chatterati were homing in on something else entirely.
Her shoes.
Shields walked onto the red carpet of the 77th Annual Tony Awards wearing a pair of sunny Crocs (CROX) to match her bright yellow Monique Lhuillier gown.
“I’ve got two theater-loving shoes on,” she told the Associated Press. “I’ve got two broken feet.”
“How did that happen?” she was asked.
“Dancing…on Broadway,” Shields replied. “I’m still paying for it.”
“Wow,” the reporter said. “What we do for our art.”
And what some people will do for a pair of Crocs, as they turn on to the chunky foam shoes’ comfort and practicality.
There are those, however, who may be mystified by the footwear’s popularity.
“Please can someone explain the trend as I’m genuinely curious as to why people are wearing crocs again?” a person asked on Reddit.
“I feel like I’ve missed something and should know why they’ve had a resurgence. I remember them being popular ~2007 but I don’t think they were this common, unless it’s just social media making it seem more prominent.”
‘If you ain’t crocin’ you ain’t rockin”
“I think part of the current trend cycle is wearing what you like, even if it is ugly or unconventional,” came one response. “I think crocs are around because they make people feel comfortable even if they’re not conventionally attractive.”
“Everyone started ironically – felt the support and comfort of the shoe – then never looked back,” another contributor said.
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Another commenter got right to the point.
“If you ain’t crocin’ you ain’t rockin’,” the respondent said.
Crocs has been making a point of rockin’ with celebrities.
In November 2018 Crocs launched Post Malone’s first brand collaboration, which sold out within minutes. The company went on to form partnerships with big names such as Luke Combs, Bad Bunny and Justin Bieber.
And Crocs has partnered with such brands as McDonald’s (MCD) , Hidden Valley Ranch (CLX) and Pringles. (K)
In May, the Broomfield, Colo., footwear company reported adjusted profit of $3.02 a share, beating the FactSet consensus of $2.25 a share.
Revenue totaled $938.6 million, up from $884.2 million a year earlier. The latest figure beat the FactSet analyst consensus estimate of $884 million.
“The North American market was well ahead of expectations and took meaningful market share during the quarter,” Crox Chief Executive Andrew Rees told analysts during the company’s earnings call. The CEO added that international grew 24% over the prior year.
And once again, Rees said, the company saw triple-digit growth in China and Australia.
“Our direct markets in Western Europe grew double digits, led by growth in the U.K., France and Germany,” he said. “We continue to have significant opportunity in China, and we remain bullish on our long-term growth prospects.”
Earlier this month TheStreet Pro’s Bruce Kamich took a look at Crocs.
“In the interest of full disclosure, I have a pair of Crox somewhere in the back of my closet,” he wrote on June 11. “I have a son and a daughter-in-law who are chefs and sometimes wear Crox and another daughter-in-law who wears Crox at a medical practice.”
“I don’t know if more people are wearing more Crocs or not beyond that, but the charts are positive,” Kamich said. “Traders could go long CROX at current levels risking to $130. The $174 area is my price target.”
Investment firm notes international sales
On Thursday Bank of America Securities analysts raised the price target on Crocs to $187 from $160 and affirmed a buy rating on the shares.
The investment firm sees a potential near-term catalyst in the form of stronger than expected international. It tells investors that the stock’s valuation remains attractive given expectations that the company will deliver consistent mid-single-digit percent sales growth at 25%+ operating margins.
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“We expect international sales growth of mid-teens on average for the remainder of the year and modest (low-single-digits) growth in North America,” Bank of America said.
“While admittedly visibility is more challenging outside of the U.S., we remain encouraged by the recent momentum and nearer term guidance (we expect 2Q growth will mostly come from international),” the firm said.
From a product perspective, sandals continue to lead recent innovation, B of A said, citing the Getaway 2.0, Miami, and Brooklyn brands. The investment firm expects a strong pipeline of collaborations to continue to drive brand heat.
In 2022 Crocs bought HeyDude, an Italian casual-footwear company, for $2.5 billion of cash and stock.
HeyDude sales took a wrong step in the quarter, dropping 17% to $195 million.
In a bid to turn things around, the company brought back former Chief Marketing Officer Terence Reilly and named him president of the HeyDude brand.
Reilly, who had helped Rees turned Crocs around, was president of Stanley Brand, where he turned the company’s 111-year-old brand’s Quencher cup into a retail phenomenon.
In the near term B of A analysts said continued momentum from the Crocs brand and hitting numbers on HeyDude — after cutting guidance last quarter — will be enough for the stock to outperform.
“We think the playbook for sequential improvement this year makes sense: outlet store opening cadence, international sell in [the fourth quarter], and lapping price headwinds,” the firm said. But it adds that “more material improvement will be needed next year.”
B of A expects the strategy will remain focused on the HeyDude Wally/Wendy brand with newness planned around the core icon silhouettes, like the recent comfort suede launch.
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