Why Crocs Waited Until 2021 To Launch An App That Will Help the Company Reach $5 Billion in Sales By 2026

It may have taken Crocs until 2021 to launch an app. But the company still has high hopes for the new digital channel’s ability to bolster overall revenue. “Over the past several years, we’ve really spent a lot of time building out [Crocs’ digital] ecosystem beyond just dot com,” said Crocs SVP and chief digital officer Adam Michaels in an interview with FN. “And I think an app is a natural extension of that strategy and another touch point for us to create direct connections and engage with our customers.” The clog maker, which will take home shoe of the year at next week’s FNAAs, announced in September it plans to achieve $5 billion in sales by 2026, which would represent a compound annual growth rate above 17% with 2021 as a base year. Digital sales are a key part of this plan. In Q3, digital sales grew 68.9% and now make up 36.8% of total revenue, compared to 37.7% in 2020 and 32.2% in 2019. Michaels said that he expects the Crocs app to be a “meaningful contributor” the this sales goal by boosting Crocs’ digital and DTC sales. But it will also will help elevate certain in-store shopping experiences as well.

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