Crocs has started to use the new bio-based Croslite material as it works to achieve a 50% reduction in its carbon footprint per pair of Crocs shoes by 2030 as part of its overall commitment to becoming a net zero brand.
In addition to introducing bio-based Croslite and becoming a 100% vegan brand by the end of 2021, Crocs is exploring sustainable alternatives for other elements of its packaging and working on ways to give Crocs shoes a second life through consumer-led donations, recycling and re-commerce programmes.
“As one of the world’s largest footwear companies, we strive to make a positive impact on the global footwear industry and our planet by committing to transparent, socially conscious, and sustainable business practices,” Crocs said.
The announcement comes as the footwear firm hosted an event this week where CEO Andrew Rees and other members of the Crocs leadership team provided an overview of the company’s long-term strategy and key initiatives to deliver sustainable, profitable growth.
“We are incredibly proud of the track record of growth and shareholder value creation since we first embarked on the turnaround of the Crocs brand in 2014,” Rees said. “Looking forward, we expect the Crocs brand to grow to over US$5bn in sales by 2026. We are confident in our ability to deliver this growth while maintaining industry-leading profitability, creating significant shareholder value, and having a positive impact on our planet and our communities.”
Crocs outlined a five-year growth framework to achieve $5bn in revenues, representing a compound annual growth rate in excess of 17% using the midpoint of the company’s 2021 guidance as the base year. Four key drivers underpin this growth – growing digital sales, gaining market share in sandals, capturing growth in Asia and innovating in product and marketing. With digital remaining a top priority, Crocs’ expects at least 50% of total revenues to be derived from digital channels by the end of 2026.
As the firm grows revenue, it expects to deliver high levels of profitability and cash flow. By 2026, it expects non-GAAP operating margins to exceed 26% and annual free cash flow to surpass $1bn.
“While Covid-19 and its impact on our manufacturing in Vietnam remains fluid, we are reiterating our full-year 2021 guidance provided in July and we are confident in our ability to achieve a 17% compound annual growth rate delivering over $5 billion of revenue by 2026,” said CFO Anne Mehlman.