Heydude

Heydude is an Italian footwear company.

History

2021: Crocs bought Heydude for $2.5 billion

In mid-December, Crocs announced the purchase of Heydude. The transaction amount is estimated at $2.5 billion.

Consumers left at home during quarantine in 2020 abandoned classic footwear in favor of more convenient, home options, which increased demand for products from companies such as Deckers Outdoor, which owns Crocs and Ugg brands. Demand in 2021 has survived. Crocs expects the deal with footwear manufacturer Heydude to fully meet this demand, especially in northeastern and coastal urban areas of the United States.

Crocs acquired Heydude for $2.5 billion

Crocs also hopes to expand the range of shoes offered beyond the rubber sabos with which it is best known, but adheres to comfort trends.

This is a good acquisition for Crocs. Heydude performed well during the pandemic, albeit somewhat unnoticed, said NPD Group analyst Matt Powell.

According to Crocs, Heydude, founded in Italy in 2008, provides about 43% of sales through online channels. In 2021, the company's revenue, known for its light everyday shoes, is expected to be about $570 million.

For comparison, Crocs, which provides 37% of sales through its e-commerce division, forecast in October that revenue in 2021 will grow by 62-65% from $1.39 billion recorded in 2020.

Heydude remains sidelined by manufacturing restrictions caused by the closure of factories in Vietnam as it mainly produces its shoes in China, Crocs CEO Andrew Rees told analysts. However, he said, the brand was affected by global freight problems, and faced significant delays and increased costs in terms of delivering its products to the United States.^[1]

Notes