Crocs used to be wildly exposed to oil prices. Not anymore.

When you are talking about Crocs ( CROX ) on the Internet you are usually talking about nurses, a fashion faux pas, some Gen Z trend incomprehensible to the over 28 crowd, or whether the wearer was in sport mode.

But this is the other side of the petrochemical business — it's not just about diesel and gas tanks. While a lot of companies are exposed to oil volatility because of shipping costs, Crocs has traditionally seen additional exposure because of the raw materials it uses to construct its footwear.

Croslite, the signature foam its clogs are made of, accounts for more than 80% of the materials used across Crocs product lines, according to the company. Since Croslite is mostly derived from oil, this has made the company doubly vulnerable to the rising costs of crude.

But despite that exposure, it seems that Crocs has been able to tame one of the wildest input costs companies have, yet again.

According to Bank of America analysts led by Kendall Toscano, Crocs is likely to conquer 2027 without much trouble, following 2022, when it similarly navigated an oil shock. It hasn't raised prices of its classic clog since 2021.

Specifically, Toscano et al. say the pressure of fuel surcharges and materials in 2027 ("assuming no moderation") will be offset by the company's "innovation."

Yes. Crocs' exposure to oil has served as a positive catalyst for the company by turning its shift away from petrochemicals into a sustainability story — and critically doing so before the Hormuz crisis.

Starting in 2024, the company achieved a milestone of producing Croslite composed of 25% bio-circular content, or plant-based waste. By 2030 the company aims to achieve a Croslite formulation that's 50% bio-based. Meaningful shifts away from oil and its fickle fluctuations.

And as a nice sustainability story, the company points out that by increasing the amount of bio-circular content in its Croslite compounds, Crocs has reduced the Classic Clog's carbon footprint by 10% compared to the 2021 baseline.

That's, no doubt, compelling marketing material. But it's also helped shield the company from the Iran War's oil shocks — and whatever else is to come.

Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban .