Bad News If Crocs Are on Your Christmas List

by Christopher Freeburn | November 5, 2012 10:31 am

Bad News If Crocs Are on Your Christmas List

crocs 185x185 Bad News If Crocs Are on Your Christmas List[1]Holiday shoppers won’t be seeing many discounts[2] on Crocs (NASDAQ:CROX[3]) 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 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[4]) and Wolverine Worldwide (NYSE:WWW[5]) are betting that reduced prices will draw more consumers, especially in a sluggish economy.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/06/crocs_185x185.jpg
  2. won’t be seeing many discounts: http://www.reuters.com/article/2012/11/05/us-crocs-interview-idUSBRE8A40I620121105
  3. CROX: http://studio-5.financialcontent.com/investplace/quote?Symbol=CROX
  4. SKX: http://studio-5.financialcontent.com/investplace/quote?Symbol=SKX
  5. WWW: http://studio-5.financialcontent.com/investplace/quote?Symbol=WWW

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