Having followed the company's goings-on over the past few months (here and here), I finally got a pair of Crocs a few weeks ago. I guess my little vote of confidence didn't do much good. Last Wednesday, Crocs stock lost 36% of its value, slicing about $2.2 BB off its market cap. Ouch! (again). Crocs had reported that its inventories had quadrupled from a year ago, and it failed to increase its quarterly earnings forecast as it had consistently done in the past. Traders apparently read this as a sign of slowing growth. Sales have grown from $24,000 in 2002 to an expected $820-$830 MM this year. Before Wednesday's bath, Crocs stock had soared to six times its initial offer price from February 2006. Wednesday night, Crocs' board approved a program to buy back as many as a million shares of its common stock (out of 82 million outstanding).
Careful. Crocs bite.
[Clip art licensed from the Clip Art Gallery on DiscoverySchool.com.]
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