Thursday, August 15, 2013
Crocs at a crossroads
Crocs, Inc., has reported a 43 per cent decline in second-quarter profits in June. Stock fell by nearly a quarter in one day as a result and Brokerage Stern Agee downgraded the company from 'neutral' to 'underperform'. Crocs enjoyed huge success when they burst onto the footwear market in 2007, but unless fortunes change Crocs may soon be stepping away from the footwear market once and for all. Decline in sales is partly blamed on colder weather and decreased consumer interest. However insiders cite problems within the company executive have also contributed. The hope is a new overhaul and redesigned shoe will give the spa clog a more stylish appeal.