Analysis on Crocs and NIKE: Industry Outlook Following a Feeble Holiday Season

Analysis on Crocs and NIKE: Industry Outlook Following a Feeble Holiday Season

  PR Newswire

  LONDON, January 18, 2013

LONDON, January 18, 2013 /PRNewswire/ --

Earlier this week, the Commerce Department reported that U.S. retail sales
rose 0.5% in December. The Commerce Department data showed that apparel
outlets registered a 1% increase in sales in December. While retail sales in
December rose at the fastest pace since September, retailers had a difficult
Holiday Season. StockCall has released free technical and charting analysis on
Crocs Inc. (NASDAQ: CROX) and NIKE Inc. (NYSE: NKE). These reports are
available now at

http://www.stockcall.com/todaysopinions

The Holiday Season, which runs from November to December, is the most
important period for the retailers as a significant portion of the annual
revenue can be generated during this period. However, 2012's Holiday Season
sales were impacted by concerns over the fiscal cliff issue. With lawmakers
locked in a heated debate last month, consumers remained on the sidelines.

Crocs Inc. this week said in a regulatory filing that the Holiday Season was
difficult and it expects backlog growth for the first half of 2013 to be at
the lower end of its previous guidance. StockCall technical report on Crocs is
available for free at

http://www.StockCall.com/CROX011813.pdf

The footwear company said that its backlog for 2013's first half is expected
to be up 15%, compared to earlier forecast of an increase of 15% to 18%.
Despite the challenging Holiday Season, Crocs reiterated its fourth quarter
revenue forecast of $220 million, which is slightly above the consensus
forecast of $219.5 million.

For the third quarter ended September 30, 2012, CROX had reported revenue of
$295.6 million, representing an increase of 7.5% over the same period in the
previous year. The company's wholesale sales for the quarter climbed 1.5% to
$156.2 million, while Internet sales rose 6% to $27.1 million. Retail sales
rose an impressive 17.7% to $112.2 million in the third quarter. Third-quarter
sales growth was driven by strength in America and Asia. While revenue rose
7.4% and 11.3% in the Americas and Asia, respectively, it fell 2.9% in Europe,
reflecting the weak economic environment in the region.

Europe has been a concern not only for Crocs but also for other footwear
companies, including Nike Inc. [ Free Research on NKE ] ^(1) Europe, in fact,
is Nike's second biggest market after North America. However, the company's
recent performance in the region has been disappointing to say the least. In
the last three quarters, revenue growth in the region has been below the
company's overall revenue growth. Nike's revenue in Western Europe in the
second quarter ended November 30, 2012 fell 2% to $897 million.

In the second quarter, Nike also saw weakness in China. However, that could
change as the Chinese economy is showing signs of improvement. Data released
earlier today showed that the Chinese economy grew 7.9% in the fourth quarter
of 2012.

Meanwhile, Nike's performance in North America, which is the company's biggest
market, remains strong. Revenue in the region rose 17% in the second quarter
ended November 30, 2012.

Footer:

1.NIKE Inc. Technical Analysis [ http://www.StockCall.com/NIKEInc011813.pdf
    ]

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