24/7 Wall Street analyzed 100 brands and makes a prediction that 12 brands will not survive after 2010. The third on in the list? Crocs, the footwear company in Niwot, Colorado.
Two weeks before the credit extension, the company’s auditors gave the firm a “going concern” letter, an indication that there would be reasonable chance that Crocs would make it another year. In the fourth quarter of 2008, Crocs lost $43 million after making $55 million in the same period the year before. Revenue fell from $225 million in the last quarter of 2007 to $126 million. Crocs won’t make it through the year.
The stock did fall from its highs last year of $72 and I wrote about it in the Boulder Net blog. The Wall Street Journal reported that the trend does not favor Crocs. In that article an analyst with Wedbush Morgan Securities was quoted saying,
"Crocs's problems have less to do with the recession than with fading public interest in its signature footwear. Their problems started earlier."
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