Crocs Shares Fall as the Public Starts to Realize They Look Silly
The only real surprise is that it took as long as it did. When shoe maker Crocs (NASDAQ: CROX) released its numbers after hours on Wednesday, it was shocking to learn that people are still buying the multi-colored clown shoes.
It really is a stunning turn of events. The plastic monstrosity which many thought would be a passing fad has somehow managed to stick around. Nobody seems to mind the fact that the shoes look like candy-coated trash, like something a four-month-old infant would scream bloody murder about if forced to wear. But maybe, just maybe, the penny has dropped.
Of course, nobody wants to see a company and its employees suffer. But hey, how about creating a new product that doesn't look as if you dipped your foot in melted Care Bears.
Still, there are plenty of people around who will happily put these things on and actually go outside, where other people can see them. The proof? Net income for the first quarter came in at $28.35 million, or $0.31 per share.
Shockingly, that's up from the $21.50 million, or $0.24 per share, this time last year. Revenues for Q1 were up a full 19.9% to $271.80 million versus $226.71 million last year. Are you banging your head on your desk yet?
But this is where it starts to fall apart for Crocs. With the warmer weather fast approaching, forecasts are down for the second quarter. Revenues are expected to be between $335 million and $340 million. Now, this is still an incredible amount of ugly shoes that are expected to be sold, but the market is decidedly unimpressed. Shares in CROX had lost roughly 6% on Wednesday after hours, and it was trading at $20.80.
That's a small victory for the aesthetically astute, but a victory all the same. Still, the amount of Crocs shoes still being sold is remarkable and raises a few questions:
Who, besides children, is wearing these things? Toddlers playing in the yard can get away with them, just. Everyone else, everyone, without exception, looks like they just escaped from a secure institution and will be in need of meds soon.
What is wrong with flip-flops?
However ugly most Crocs shoes are, the orange Crocs shoe is the master of vile. Who in the world would choose to wear the orange shoe?
When people say, "I don't care what they look like, they are comfortable and practical", why does that not apply to other items of clothing? How about the pastel-colored, rubber hat?
As children's feet grow, can you heat up a Crocs shoe and stretch it a little?
Is there a landfill somewhere, just filled with old Crocs? And if so, can you imagine future generations discovering it?
Kudos to you, Crocs. From a business perspective, what you have achieved with these shoes is little short of miraculous. But maybe, finally, now is the time for a redesign.
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