Crocs, Inc. is poised for profitable growth in 2010 after a wrenching 2009, when the company slashed inventory by 60% and cost of goods by 35% and eliminated all debt, its President and CEO John Duerden told an audience at the ICR XChange investment conference last week.


Duerden, who was appointed CEO in March, 2009 following the spectacular collapse of the company’s stock, said he was “quite excited” about fourth quarter sales, when he said consumer demand for Crocs exceeded expectations. Comp sales rose in the United States and sell through at wholesale was improving, he said. He predicted CROX would be profitable for the whole of 2010.

Duerden said preseason bookings for spring/summer were running 60% above last year and that wholesales would remain the company’s primary channel of distribution. CROX now owns 310 stores, including 82 full-price, 49 outlet, 62 shop-in-shops and 116 kiosks. Duerden said the company would phase out the kiosks, which sprung up in malls nationwide, in favor of full price stores moving forward.

In 2010, CROX will focus a reduced marketing budget on “Feel the Love,” a fully integrated campaign that will emphasize the comfort of Crocs broadening product line. The campaign is aiming for 1 billion adult impressions and will use social media, cable television, outdoor advertising and even bus sidings.

Duerden said that while 2009 was all about stabilizing the company and restoring confidence with dealers, 2010 will be about returning to growing sales, profits and investing in becoming a four-season footwear brand. By 2012, Crocs wants to have “number 1 share of mind in injection molded footwear.”