• by Sarah Mahoney  @mahoney_sarah, May 9, 2024

Crocs is two-stepping deeper into the circular economy, offering people 10% off new clogs -- if they hand over an old pair for recycling. It began testing the “Old Crocs. New Life” program in October. Based on encouraging initial results, the company says the efforts will help it as it tries to find more sustainable ways to manufacture and market its popular footwear.

People can drop their old Crocs off at Crocs retail and outlet locations or order a free Mail-Back Kit, earning a 10% discount they can use in stores or online. The footwear company will upcycle worn-out Crocs into new shoes, while those that fall in the “gently used” category will go to Soles4Souls, a nonprofit that distributes shoes in developing countries.

“The growth of this program is an exciting continuation of our efforts to address the environmental and social challenges faced by the footwear industry and ultimately make a difference by keeping shoes on feet and out of landfills," says Deanna Bratter, Crocs’ vice president, global head of sustainability, in the announcement.

The news follows a stellar performance for the Broomfield, Colorado-based company, with revenue rising 6% to a record $939 million. Direct-to-consumer sales gained 11.8%, while wholesale revenues increased 3.2%.

At the Crocs brand, revenues jumped 14.6% to $744 million.

One sour note is sales of HeyDude in North America, whose revenues plummeted 17.2% to $195 million. The company expects equally dismal results in the coming quarter. Last month, it appointed Terence Reilly, a former chief marketing officer for Crocs, to lead the troubled brand.

Despite the HeyDude sales disappointment, Jonathan Komp, who covers Crocs for Baird, is naming the company a “Bullish Fresh Pick.”

“Crocs brand remains impressive,” he writes, “with a strong pipeline spanning marketing, collaborations, and product (Echo Storm, Gateway sandal, slippers for Fall) supporting the outlook.”