How much of Crocs’ revenue comes from haram?

Crocs earns its revenue primarily from selling footwear and customizable accessories for its shoes.

Practical Islamic Finance concludes:

None of Crocs’ revenue comes from anything inherently haram.

Does Crocs rely on interest to operate?

Year-to-Date
for period ended
6/30/2021
Fiscal year
ended
12/31/2020
Fiscal year
ended
12/31/2019
Interest Income $98$215$601
Total Revenue$1,100,871$1,385,951$1,230,593
Interest Expense $6,344$6,742$8,636
Total Expenses$780,863$1,150,756$1,101,944
Interest Income / Revenue0.009%0.02%0.05%
Interest Expense / Total Expense0.81%0.59%0.78%
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes:

Riba is used but not relied upon in Crocs’ operations.

What is Crocs’ Environmental, Social, and Governance (ESG) impact?

Environment

According to Crocs, the company saved 90,000 unsold pairs of its shoes from landfills in 2020 by donating them.

In addition, 85% of Crocs’ products are sold without shoe boxes.

Social

Since 2016, Crocs has donated over 1.8 million pairs of shoes, including 860,000 pairs of shoes donated to frontline healthcare workers in 2020.

In addition, with the help of its customers, Crocs raised nearly $1 million for Feeding America in 2020, distributing over 8 million meals for those in need.

Crocs has a relatively high Glassdoor rating of 3.6 out of 5 from over 600 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights.

Practical Islamic Finance concludes:

Crocs has a net positive ESG impact.

Comfort Rating

From Crocs’ business, financial, and ESG reviews, Practical Islamic Finance rates Crocs stock as: 

Comfortable to invest in from a halal perspective.

Sources

Crocs 2020 10-K 

Crocs Q2 2021 10-Q 

Crocs Environmental Impact 

Crocs Social Impact