Daniel Mahncke and Shawn O’Malley dive into Crocs, the footwear company that turned a ridiculed foam clog into a global fashion phenomenon. After a post-IPO collapse and years of overextension, Crocs has staged one of the most impressive brand comebacks in recent retail history — now fueled by strong margins, loyal customers, and bold international expansion. But there are still some challenges and risks. The HEYDUDE acquisition wasn’t successful yet, and the turnaround will still take time, and there are still reasonable doubts around the sustainability of the growth and fashion relevance of Crocs.

In this episode, Shawn and Daniel unpack what’s driving Crocs' profitability, why its turnaround worked, and whether its Asia strategy could be the next big unlock. They break down the brand's unique mix of comfort and cultural cachet, the economics of Jibbitz and limited-edition drops, and how Gen Z’s shift toward athleisure might power a decade of demand. Along the way, they explore whether Crocs is a misunderstood compounder or a hype-driven value trap — and where the stock could go in a bull, bear, and base-case scenario.

IN THIS EPISODE, YOU’LL LEARN

00:00 – Intro 04:59 – How Crocs was founded

13:38 – Why Crocs almost went bankrupt in 2008 and how it survived

25:44 – What started the second hype cycle

28:35 – What its highly customized designs mean from a business perspective

32:57 – What role social media plays in Crocs’ success

41:31 – How the HEYDUDE acquisition hurt Crocs’ business

50:28 – About Crocs’ international strategy

01:04:23 – Whether Crocs is attractively valued at its current levels

01:09:18 – Whether Shawn & Daniel add CROX to The Intrinsic Value Portfolio

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

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