When it comes to companies collaborating with famous people, some are all for it, others will pass all the time and others might be hesitant to never say never. One footwear company partnered with Justin Bieber in 2020 and its shareholders might now be saying it’s too late now to say sorry to anyone who doubted the company or its stock.
What Happened: Footwear company Crocs CROX announced a collaboration with singer Justin Bieber in October 2020.
The release was inspired by Bieber’s drew house label and resulted in shoes that retailed for $54.99. The collection was extremely popular and sold out. Shares of Crocs spiked in early October 2020 on rumors of the collaboration.
In March 2021, Bieber and Crocs teamed up once again for a second collaboration. The second line of Bieber-themed Crocs shoes retailed for $69.99 and sold out in 90 minutes.
“They’re comfortable, they’re fashionable and most importantly it’s fun to bring your own style to how you wear them. It’s been a blast bringing this latest collaboration with Crocs to life,” Bieber said at the time.
Crocs has partnered with the likes of Post Malone, Luke Combs, Peeps, Vera Bradley and KFC. Its collections with Bieber may be among the company's most well-known.
Bieber is a globally recognized musician, which likely brought increased attention to the Crocs brand. With some hating on the shoes with holes, Bieber’s sign of approval may have made them “beliebers” in the shoes and brand.
Bieber is one of the most-followed people on social media, ranking third on Twitter with 113.7 million followers and 11th on Instagram with 277 million followers.
Here’s a look at how Crocs shares have performed since the first Bieber collaboration.
Related Link: Is Crocs Headed For New All-Time Highs? Here's What The Chart May Indicate
Investing $1,000 in Crocs Stock: Investors who didn’t want to mess with ordering Bieber shoes or weren’t fans of the musician may have had a hit with an investment in the stock behind the collaboration instead.
A $1,000 investment in Crocs stock the day of the first Bieber collection could have purchased 20.32 shares, based on an intraday high of $49.22.
The $1,000 investment would be worth $2,671.47 today. This represents a return of 167.1% over the last two years and four months, for an average annual return of 71.7%.
The SPDR S&P 500 ETF Trust, which tracks the S&P 500, has returned 15.5% over the same time period.
Not all investors recognized the potential of the collaboration with Bieber, but it may have been part of Crocs plan all along to partner with musicians and celebrities on collaboration to create hype for limited edition drops and become part of sneaker culture, where fans line up for new releases or buy limited releases on secondary exchanges.
When it comes to a collaboration with Bieber, Crocs may have had a couple No. 1 hits.
Photo via Pixabay.
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