Crocs Vs. Designer Brands: Which Footwear Stock Is A Better Buy?

person wearing white rubber clog

Source: Unsplash 

Niwot, Colo.-based Crocs, Inc. (CROX) and Designer Brands, Inc. (DBI) in Columbus, Ohio are two popular retail footwear companies. CROX produces soft, lightweight, non-marking, slip-and-odor-resistant shoes made from closed-cell resin material. It sells its products through wholesalers, retail stores, e-commerce sites, and third-party marketplaces. DBI offers an assortment of brand-name dresses, casual and athletic footwear through wholesale, First Cost, and direct-to-consumer e-commerce sites. In addition, both companies provide accessories for women, men, and children.

As consumer spending rebounds with improvement in the job market, companies in the footwear industry are striving to launch flexible, casual, and eco-friendly product lines to keep pace with changing consumer trends. Because of a strong e-commerce presence and increasing foot traffic in stores with the economy’s reopening, U.S. fashion footwear sales rose 7% year over year to $2 billion during the first quarter of 2021. The global footwear market is expected to grow at a 1.8% CAGR to  $341.27 billion in 2026.

While DBI gained 51.5% over the past year, CROX surged 79%. In terms of their performance so far this year, CROX is a clear winner with 109.5% gains versus DBI’s 88.1%. But, which of these stocks is a better pick now? Let’s find out.

Latest Movements

On July 21, CROX announced its commitment to becoming a net-zero company by 2030. At 3.94 kg CO2 eq. per pair of Classic Clogs, CROX will be a 100 percent vegan brand by the end of 2021. Currently, CROX is finalizing its approach to a more sustainable biobased Croslite material, the predominant material in its footwear.

On July 7, CROX and global esports organization Gen.G announced a partnership for a Minecraft build competition. “The ‘Build Your Life in Color’ competition is another example of how Crocs continues to innovate by creating authentic relationships with brand fans and consumers on the digital stage,” according to  Crocs SVP & Chief Marketing Officer Heidi Cooley.

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Jason Green 1 month ago Member's comment

#CROCS all day everyday, I'm from the streets! $CROX