Bad News If Crocs Are on Your Christmas List

It's focusing promotions on three new shoe collections

   

Holiday 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.

Lesson Learned: The Crocs Fiasco Is Hardly Unusual
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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