Crocs is suing Philadelphia-based discount retailer Five Below, alleging the company knowingly sold knockoff versions of Crocs’ famous foam clogs.
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Crocs’ attorneys say Five Below kept selling Crocs look-alikes and accessories even after being notified this March of their trademark, patent, and intellectual property infringement.
The allegations were detailed in a lawsuit filed last week by Crocs and its subsidiary, Jibbitz Charms, in U.S. District Court in Colorado, where Crocs is based.
The plaintiffs take issue with Five Below’s “Juniors Charm Clog,” which look like trademarked Crocs, and the shoe’s accompanying charms, which resemble the patented Jibbitz ones that can be affixed to Crocs.
Five Below is “clearly attempting to trade off the significant investment Crocs has made in its brand,” the attorneys wrote in the lawsuit.
And they were doing so at a lower price point, the lawsuit noted. Crocs’ classic adult clogs range from $50 to $75, while its kids’ version sells for about $40. Five Below’s “Juniors Charm Clog” is listed at $7 on its website.
Five Below spokespeople did not return requests for comment Wednesday.
Crocs’ attorneys have asked for a jury trial and are seeking an unspecified amount in damages, which include lost profits, according to the lawsuit. The company also wants a permanent injunction to prevent Five Below from selling products that resemble Crocs.
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Crocs says it sells 150 million pairs of shoes each year, with annual sales of more than $4 billion.
The lawsuit was filed amid positive financial performance for Five Below.
As of August, the company had opened 101 net new stores this year, a saw a more than 27% increase in net sales, according to its latest earnings report. Its reported net income was more than $344 million compared to nearly $84 million at the same time last year.
This success has come under the leadership of CEO Winnie Park, who took over in December 2024 with a mission to reaffirm Five Below’s reputation as an “extreme-value retailer,” as the company called itself in her hiring announcement.
Executives have said they’ve also gotten a boost from viral toys like plush Squishmallows and artificial-intelligence tools that help with inventory.
Five Below was founded in Wayne in 2002 and has since expanded to include more than 2,000 stores in 46 states. In 2018, the company opened a massive three-story headquarters in the former Lit Bros. building at 701 Market St. in Center City, where it is currently headquartered.
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