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Crocs Update
By JLP | April 16, 2008
Remember back in November when I wrote Crocs: The Beginning of the End? Well, the stock was trading at around $47 then (after being as high as $75). Now it is currently under $10 per share. It was quite a ride:
You can click on the chart to see a larger version.
What will the future hold for Crocs? I have no idea.
Any guesses?
Topics: Investing | 8 Comments »
April 16th, 2008 at 11:36 am
Crocs have always been a trend, and not an expanding business. If you looked at their strategy, they tried to expand into other areas and failed. I’m not at all surprised the stock got beaten up after their earnings release on Tuesday.
One thing’s for sure – if you want to invest (vs. trade), don’t go for these types of companies.
April 16th, 2008 at 3:25 pm
I picked up a copy of Vanity Fair a week or so ago (I bought the issue a few months ago but just got around to finishing it). I was really surprised to see an ad for Crocs, which said “Crocs for people who wouldn’t be caught dead in Crocs” and had a glamorous-looking woman holding a pair of Crocs that looked much more fashionable than the clogs. My best friend got the clogs when they first came out and I thought they were wretched, but for my birthday she got me some really cute light purple ballet flats they had just started making. If they can successfully revamp their image as a classier brand, perhaps they’ll do better once the economy perks up a bit. (Or maybe that’s why the stock did perk up, but the stock market tanked and they went down…the issue went out a few months ago, so maybe I’m behind the curve.)
April 16th, 2008 at 11:14 pm
Their unique selling position has been eroded by copycats. The idea was neat but they’re to easily replicated. They should expand to make those things into visors, stadium seats, boat cushions, maybe even cheap baseball gloves. I don’t think anyone has worked to grow the line. Too bad!
April 16th, 2008 at 11:19 pm
I do get myself burn on cros ,is a matter of supply & demand . After get caught once , I will definetly think twice before going in again .
Thanks for the up date
Tracy Ho
wisdomgettingloaded
April 17th, 2008 at 12:09 am
I just bought a pair of knock-off crocs at Target for $7.00. They were made in China. I cannot see how Crocs can maintain the market anymore when it’s hard to tell who is wearing originals and who is wearing knock-offs.
April 17th, 2008 at 4:17 pm
Another clothing trend. URBN is the next to fall.
April 17th, 2008 at 4:46 pm
I bought a pair of knock-off’s for 4.99 at Wal-Mart and they are really comfortable. These days I am seeing more knock-off’s than the real deal. When your product is an injection molded part that is easily copied, and you throw China in the mix you are done. There are more sophisticated electronics that the Chinese are copying with ease.
Best
April 18th, 2008 at 11:51 am
There was an article about this in Macleans this week. They mentioned a company called Holeys something like that, which is one of the copycats mentioned above and I think went from $100k to $18m in sales. Crocs are moving some manufacturing from Canada to Mexico.