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Crocs was originally manufactured by a company called Western Brands based in Minot,Colorado. The name was changed to Crocs as Western Brands just didn't seem to fit the little plastic shoes that are full of holes. Crocs are sold at 29 company owned stores,174 kiosks and 6 retail outlets. Crocs are also marketed at a large selection of customer owned retail outlets. Crocs at the beginning was shoes,but after research and development have developed an array of athletic equitment including knee pads,gloves.backpacks and many other products all made out of resin.
Crocs issued their 1st quarter 2008 results today and we'll try and decide if Crocs is gaining traction or just full of holes. Revenues for 1st quarter 2008 increased by 39.8% when compared to 1st quarter 2007. Crocs sales increased by over 11% domestically and international sales increased by over 79%. Sales for the first quarter 2008 increased to $198 million from sales of $142 million for 1st quarter 2007. Yet for the 1st quarter 2008 Crocs reported a loss of $ 4.5 million compared to a net income of over $ 29 million for 1st quarter 2007. Crocs reports the results were affected by a $ 20 million charge related to a plant closing in Canada. Crocs reports they took a $ 12 million charge this quarter related to the Canadian plant closing and if they disregarded "part" of the $ 12 they would have netted over $ 7 million on a non-gap basis.
Crocs 1st quarter 2008 sales increased by $ 56 million for the quarter and cost of sales increased by $ 56 million. The major cost increase for the quarter was an increase of $ 29 million for SG&A expenses. Crocs also paid no income taxes for the 1st quarter 2008 due to the reported loss and they paid $ 12 million in taxes for the first quarter 2007.
Crocs issued guidance for 2008 saying they expect revenue growth of 10 to 15% over 2007 and diluted earnings of $ 1.54 to $ 1.64 per share. If you look at all the variables and Crocs has already reported a loss for the 1st quarter I think they will fall short of projections and I think Crocs is full of holes.
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