Does HeyDude Make Crocs Even More Unstoppable?
In late December, it was announced that Crocs (NASDAQ: CROX) would purchase privately held footwear brand HeyDude in a $2.5 billion cash-and-stock deal. "With the acquisition of HeyDude, we are thrilled to add another high-growth, highly profitable brand to our portfolio," said Crocs CEO Andrew Rees in a press release. "We believe HeyDude's casual, comfortable, and lightweight products are aligned to long-term consumer trends and are a perfect fit for Crocs," he continued.
Crocs currently has a market cap of $7 billion, so this is a major deal. Will HeyDude take Crocs to the next level? Or does the potential acquisition signal that Crocs' main product, the seemingly ubiquitous foam clog, is no longer viable to drive sustainable growth over the long term? Let's try to find the answer.
Image source: Getty Images.
Source Fool.com
