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