Saturday, September 04, 2010
I love Crocs: Welcome back
Crocs are back from the brink of business oblivion. The once fashionable but not so popular plastic clogs racked up huge losses in 2008 and 2009. However their fortunes have had an abrupt turnaround with stocks leaping by 130% in eight months. The company recently delivered a $32m (£21m) quarterly profit following a 31% jump in sales to $228m. After the initial and meteoric rise of Crocs many were critical of the company and felt they had become too heavily dependent on one style of shoe. Fortunes did dwindle assisted ably by the downturn of the global economy and poor management control. The firm changed its management, slashed its workforce, shut down factories in Canada and Brazil, and eliminated acres of warehousing space. Crocs became more discerning about distributors and created different product ranges for varying retailers. The change worked and good fortune returned. Now they offer 230 different styles, all based on comfort with a range of variations from sandals to walking shoes, boots and even high heels. The original moulded clog accounted for almost a third of revenue in 2007, now they generate just 16% of Crocs' sales.
,Little Rubber Shoes.com offers badges declaring "I love my Crocs".