Crocs has emerged as a rare example of a U.S. brand thriving in China, the world's second-largest economy, where many other American companies have struggled. China has grown to become Crocs' second-largest market after the United States, with revenue rising more than 30% in the most recent quarter, contrasting with a 6.4% decline in North America. The brand's success in China is attributed to its appeal among Generation Z consumers, particularly through social media engagement and personalization trends. Crocs' Shanghai stores have become popular, with the brand effectively adapting to local tastes. Additionally, Crocs is preparing to release new designs by Steven Smith, known as the "Godfather of sneakers," before the end of the year. The company has also authorized stock buybacks amounting to a quarter of its market capitalization. Analysts from Baird have noted that management is taking steps to mitigate downside risks while positioning the company for improved performance and growth in 2026 under new creative leadership. Meanwhile, competitors like Nike are targeting growth in China with revamped product lines, including trail shoes, to reclaim market share.