Crocs, Inc. (NASDAQ:CROX) is currently experiencing some upside after falling to some hard times in the past and it has Drew Barrymore to thank for the new hope.
Crocs made a name for itself back in 2002 by introducing its footwear product, made from foam clog. The company has been struggling in terms of sales and was one of the ten struggling businesses that were subject to analysis in an e-commerce report by ThreadUp. However, things seem to be looking up for the company, thanks to an ad campaign featuring Drew Barrymore and WWE superstar John Cena.
The Barrymore effect is responsible for the new sales spike
The e-commerce report by ThreadUp claims that crocs were the highest selling products of the ten brands that were part of the analysis. This spike in sales is believed to have been the result of the ad campaign and a ThreadUp spokeswoman even described it as the Barrymore effect. The data from the e-commerce website claims that 90 percent of the Crocs in stock were sold within 18 days. The statistics also showed that Crocs sold 58 percent faster than all the other brands that sell their products on the website.
Despite the good news, it is still too early to determine whether the ad campaign is the reason behind the sales spike. However, it will be clearer once the firm releases its earnings report on Wednesday. Investors anticipate flat sales this year compared to 2016 according to the predictions made by Crocs. This is due to the fact that the firm has been having a tough time trying to reinvent itself and appear attractive especially to the younger generation.
Analysts expect Crocs to report a profit of 3 cents per share for the estimated sales figures at $$258.1 million as estimated by Thomson Reuters. This is lower than the 7 cents per share that the company reported in the first quarter of 2016 along with a sales figure of $279.1 million. Crocs stock has fallen by almost 20 percent over the past one year.
Crocs stock closed the latest trading session on Tuesday at $6.20 after a 4.2 percent gain compared to the value of the stock during the previous close.