Bad News If Crocs Are on Your Christmas List

It's focusing promotions on three new shoe collections

   

crocs 185x185 Bad News If Crocs Are on Your Christmas ListHoliday shoppers won’t be seeing many discounts on Crocs (NASDAQ:CROX) shoes this season.

The company said it had slashed its sales promotions from 58 last year, to about 20 this year. Instead of numerous short-term promotions, Crocs planned to concentrate an a smaller number of longer-running discounts, Reuters notes.

crocs 185x185 Bad News If Crocs Are on Your Christmas List
Lesson Learned: The Crocs Fiasco Is Hardly Unusual

Crocs is introducing three new product lines, including collections of clogs, boots and fur-lined shoes.

Boosting European sales is also on the company’s agenda. Crocs saw its sales in Europe fall 2.9% last quarter. It’s betting that a new line of clogs will prove a hit with European consumers.

At the end of the last quarter, Crocs’ inventories were 24.1% higher compared to last year. More than half of the company’s $187.6 million inventory was composed of clogs.

While Crocs may be cutting back on discounts this season, its competitors, including Skechers (NYSE:SKX) and Wolverine Worldwide (NYSE:WWW) are betting that reduced prices will draw more consumers, especially in a sluggish economy.


Article printed from InvestorPlace Media, http://investorplace.com/2012/11/bad-news-if-crocs-are-on-your-christmas-list/.

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