But Crocs Chief Executive Andrew Rees said the retailer sees the chance to expand the Hey Dude brand to new geographies — along the coasts of the United States and throughout the North. Crocs is also hoping to grow its portfolio of shoes beyond the rubber clogs that it's best known for while still tapping into comfort trends, he said.its plans to acquire the privately held footwear label Hey Dude for $2.5 billion, in a cash-and-stock deal.
"We think a great way to diversify and provide a little bit more security to our investors is to not diversify away from the iconic clog within Crocs, but to add another brand, which has its own icon," said Ress, in an interview on CNBC's "." "And that provides, we think, a tremendous diversification and a really compelling reason for us to acquire this brand."
Founded in Italy in 2008, Hey Dude does more than 40% of its business online and is expected to bring in roughly $570 million in revenue in 2021, Crocs said. The brand's sales are forecast to be between $700 and $750 million in 2022, according to Ress.