Crocs, the chunky foam clogs that debuted in 2002, have fallen on hard times lately, but an unusual indicator may point to better days ahead.
The iconic shoes, which have received a lot of criticism over the years for their odd appearance, are still selling like hotcakes on the resale market, according to a new report from online consignment shop ThredUp.
Of the 10 struggling retail brands – such as Wet Seal, Ralph Lauren and Baby Stores – analyzed in ThredUp’s e-commerce report, Crocs is the fastest-selling reseller and one of the fastest-growing “mall brands” on the thrift store’s website, the company said.
In April, for example, Crocs items sold 58 percent faster than comparable or average-selling brands on the site. Data shows that nine out of 10 Crocs items were resold on the secondhand shop’s website within 18 days.
The brand’s new advertising campaign “Come As You Are,” featuring movie star Drew Barrymore and WWE champion John Cena, may be behind the recent increase, a ThredUp spokeswoman told CNBC, calling it the “Barrymore effect.”
It is not yet clear whether the celebrity-led advertising campaign also boosted the company’s sales, but investors will have a better idea on Wednesday when the company reports its results before the market opens.
Crocs predicts that sales will be flat this year compared to 2016 as the company works to reduce its store count. The company is struggling to reinvent its brand image and appeal to younger shoppers.
Analysts expect the company to report earnings of 3 cents per share on revenue of $258.1 million, according to Thomson Reuters estimates. In comparison, Crocs’ actual earnings per share in the first quarter of last year were 7 cents on revenue of $279.1 million.
Earlier this year, Crocs announced plans to reduce the number of its stores by a net 25 percent by the end of 2018. This will reduce the number of stores from 558 at the end of 2016 to 400 over the next two years.
Crocs shares closed at $6.20 on Tuesday, up 4.2 percent. But despite this gain, the stock has fallen nearly 20 percent over the past 12 months and is down about 10 percent year-to-date.
