Sunday, November 04, 2007
Crox Share scare: But they are here to stay
Crox shares fell recently after enjoying a peak on the stock market. Some advisors temper caution whilst others advocate a good time to buy more shares. The debate centres on whether the shoes are over hyped as a fashion item and constitute a fad or blip for share invetors. The recent downturn may be related to the company having spent heavily to meet demand in some markets. The 21st century shoes are made of new polimer materials and are soft, odor-resistant and especially comfortable to wear but are a seasonal product. Much of the company’s 2007 inventory are being kept in warehouses for sale next year. Crocs have respond to consumers' concerns about chilly feet in winter and released a new Croc model featuring a faux-fur lining (combination of clog and ugg boot). There are two main reasons for Croc’s monumental success, the first is the way the product harnesses new polymer technology like no other rival and; the manner in which the company have been able to diversify their product range to appeal to other markets such as the exercise thong and medical shoe. Children's shoes by Crocs accounts for 30% of their overall sales in the U.S. and overseas. The firm expects earnings to rise another 35% to 40% next year.