Crocs: A Declining Business Can Still Be Attractive if Priced Right

22 days ago

"Stock number one is probably going to make you guys chuckle just a bit. It's Crocs. Yes, those really awful but very practical shoes that a lot of men love to wear. People love to joke about them. But guess what? While people may be laughing, Crocs has quietly become one of the most profitable footwear brands in the world, boasting an industry-leading 59% gross margin. What does that mean? Every Croc they sell, almost 60% of it is profit for them."

The speaker highlights Crocs' impressive profitability despite its offbeat reputation, noting its high gross margin and strong free cash flow generation. The commentary implies that even a declining business can represent a good investment if acquired at the right price.

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