As recently as last fall, analysts were calling Niwot-based Crocs Inc. a one-trick pony. The maker of popular, brightly colored clogs was listening.
Crocs unveiled a line of fashionable, high-end shoes this week in an effort to expand a portfolio criticized by analysts for not being diverse enough.
Launching this fall, You by Crocs is being billed by the company as the intersection of fashion and comfort. The soles will be made of Croslite, the closed-cell resin that gives Crocs their distinct feel. But that’s where the similarity ends.
The shoes are made of leather, suede and lamb’s wool, and will carry a price tag of $150 to $300 – a steep climb from the $30 boating clogs that helped build the company into a shoe giant.
Crocs spokeswoman Jessica Packard called the move a natural progression.
“Crocs is known for having one of the most comfortable shoes in the market,” Packard said. “It seemed an obvious extension to incorporate our technologically advanced Croslite into a fashionable shoe.”
Analysts who track the company are lauding the move.
Mitch Kummetz, a Denver-based senior analyst with Robert W. Baird & Co., was neutral about Crocs last year. But in a report published Wednesday, Kummetz and co-author Kevin Kim called You by Crocs a logical step and gave the company an outperform rating.
“While high-end women’s fashion footwear may seem like a leap for this company, we believe it is well within the company’s capabilities and consistent with its strategy of diversifying the overall product offering,” Kummetz said in the report.
You by Crocs will include seven high-heeled wedges and two lifted flats, with each style offered in various colors, Packard said.
With cocktail-related names such as Highball, Gimlet and Shaken Not Stirred, Crocs is going for a hipper, more specific demographic.
Rachael Donaldson, a local fashionista and professional style coach, said she is tempted to try on a pair.
“They look warm, comfortable and cute,” Donaldson said. “That’s the trifecta.”
Donaldson said the boots could potentially be perfect for Denver, depending on how comfortable they feel. And it’s shoppers like her whom Crocs had in mind.
The line is slated for a limited, regional release, which includes Denver, Packard said. She would not say how many pairs of You would be shipped for the initial run, nor would she specify which retailers or which other markets would carry the boots.
Angelique Dab, a senior analyst with San Francisco-based Nollenberger Capital Partners, said the conservative launch is a smart move.
“I’d much rather see them test the waters than go all out with the product launch,” Dab said. “I think that’s very positive as a strategy.”
As part of its effort to diversify, Crocs has been aggressively acquiring footwear-related companies. Crocs’ European subsidiary EXO Italia, which it acquired last year, designed the You line.
Crocs in February acquired Ocean Minded, which specializes in men’s sandals and beachwear.
“It follows along the path of becoming more of a portfolio brand, which I’m really excited to see,” Dab said. “What we need to see now is execution on their current plan.”
Crocs’ stock gained 15 cents to close at $85.20 Wednesday.
Staff writer A.J. Miranda can be reached at 303-954-1381 or amiranda@denverpost.com.
