Wednesday, September 23, 2009

Crocs Dealing with Bankruptcy


Crocs Dealing with Bankruptcy
By: Christina Dove
In 2002, Crocs emerged as a new trend following a recession. Everyone was buying them from children, parents, celebrities, older people, etc. Their stock was doing as well as their reputation, everyone wanted a pair of crocs and they were a relatively cheap investment at $30. But then the economy went south and the demand for crocs was dwindling. They tried to add a little variety with flip flops and decorations for the tops of the shoe, but all in all the company was struggling to stay afloat.
Crocs were no longer being sold out everywhere, in fact there was an overstock of the shoes and not enough demand. Knock-offs also significantly hurt their sales. Some experts are comparing the shoes to Heelies, which pretty much went extinct and the onset of the economic crisis as well.
The future does not look bright for Crocs since it is a difficult time for any business to be making a profit right now. Also, people do not need to replace their crocs very often and most likely would not be buying luxury items in this time. Crocs is going to have to significantly alter their business model if they want to have positive results in the future.

1 comment:

  1. Please do your homework. Look at the latest Crocs earning announcement or my post about the misconceptions about crocs at www.biggercapital.com/blog

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