🦧 hey dude

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icymi: CROX 0.00%↑ (crocs inc.) made an acquisition

• back in february, crocs acquired heydude, a then privately-owned casual footwear brand, for $2.5b

• heydude’s line of products allowed crocs to expand its portfolio of footwear products

initial reactions

• upon news of announcing the acquisition, crocs shares tumbled 11.6% (back in dec. ‘21)

• potential reasons being:

  • a whopping $2.05b out of the $2.5b acquisition was to be paid for with cash

  • investors were fretting over the deal, doubting how much synergy could come out of the rubber clog and heydude’s casual comfy shoes could have

$2.5b was worth it

• CROX 0.00%↑ shares rose 14% today after a expectations beating q3 earnings report

• revenue rose 57% year-over-year, thanks to heydude

  • crocs brand only took up 72% of total revenue, as heydude brought in $270m in q3 only

• crocs forsees that the revenues of its hey dude arm should surpass $1b in 2023

happy thursday!

💡 something im thinking about

just exactly how bad is meta going? (click image)

that's all, folks 🐒

as always, i’m no financial advisor! (i’m no substitute for professional financial services)