Crocs sales plummet

Let me just put it out there that I am not a fan of crocs - especially those with the holes on top. I thought for a while that I may get a pair to just have because hell, they were so "in." But alas, I did not, and apparently, all the hype has died down because their sales have plummeted like there is no tomorrow...


Crocs stock plummets after warning

By STEVE LADURANTAYE
July 25, 2008 at 11:06 AM EDT

Shares of Crocs Inc., the once high-flying shoe maker, fell 47 per cent at the open Friday after the company warned it wouldn't come anywhere near its previously announced expectations for the quarter.

The company had told investors they could expect profits of 42 cents (U.S.) to 47 cents a share in its second quarter, but it said after the market closed Thursday that 3 cents to 7 cents would be a more reasonable expectation as sales volumes declined. Analysts were looking for 41 cents.

“Although we made important progress reducing costs in our manufacturing and distribution platform, primarily shutting down our Canadian facility and lowering our headcount, it was not enough to offset the lower than projected sales volumes,” chief executive officer Ron Snyder said in a statement.

Crocs shares closed trading Thursday at $8.95 on the Nasdaq Stock Market. At the open Friday, they were trading for $4.73, down $4.22. They were trading for as much as $75 in October, as the company's brightly coloured, lightweight shoes peaked in popularity.

Mr. Snyder said retailers around the world were being “extremely cautious” with their orders, and were keeping leaner inventories than a year ago. While sales were up 65 per cent in Asia and 13 per cent in Europe in the quarter, the gains were less than expected.

“We are obviously disappointed with the economic situation in the U.S. and parts of Europe, however, we remain confident about the long-term prospects of this business,” he said. “We are currently in the process of sizing our business to be profitable on lower projected sales volumes, and these cost actions will continue through the end of the year.”

Sales projections in the quarter were lowered to $218-million to $223-million, from $247-million to $258-million.

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