Crocs Creates Headwinds for Itself

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Nov. 13 (Bloomberg) -- Crocs held buyout talks that are unlikely to lead to a sale, leaving it to consider other options to boost value, people with knowledge of the matter said. Alix Steel reports on Bloomberg Television's "Money Moves." (Source: Bloomberg)


I know that crocs were meeting with private equity managers and discussing possibilities.

It seems like a buyout is not going to happen but it seems like the stock is up.

Options or something and might not be a bad thing.

The question really is, is it's going to happen.

Crocs wants what it should be worth.

The stock almost hit $18 at one point of this year.

I talked to a lot of analysts about this.

They were reluctant to get any overall comment.

The vibe i got is, what is crocs worth?

Their costs are also rising.

A lots of uncertainty surrounding that.

They did try to appeal more to adults.

They try to get more styles and their.

Do not quite now that is showing up for the company, at least whether or not it is showing up in the stock seems clear.

What is the other option for crocs at this point?

An estate sale.

If you consider the stock is still in double digits.

This might be a good time to do that.

On the flipside, crocs recently announced another buyback which is a pretty large increase.

You could argue that any kind of sale would be in those early stages.

It is funny that you mentioned they sell things other than these ugly clogs.

I did not know that.

They sell flats and for-lined boots.

Accpac's. you don't know.

That is part of the issue.

You are going to get a ton of hate mail from certain communities.

Nurses are always in crocs by the way.

Physicians assistants.

We have the whole team with orange crocs going on.

What other headwinds question mark they are ugly.

Unless you work of a profession where you need good, comfortable shoes, the problem is that no one will want to buy them.

You do not know the that they sell other stuff.

Crocs -- clogs represent 40% of their sales.

Over at stern, sam says that there is no reason for them to stop deteriorating.

Now the company is looking for a fourth- quarter loss of $.20 to $.30. they had a big marketing push to try to get it to be a family lifestyle and a brand.

If i'm going to editorialize, you're going to be like thomas great.

The whole family from babies to grandparents will be in clogs.

Over the summer, we were comparing catalogs color wise.

You can see they were really trying a little bit to keep it up.

This speaks to a management credibility issue.

The ceo wants to double sales in the next five years.

They have all of these new products, but all we think about our ugly clogs.

That is part of the issue.

You have michael schwarz saying that the story is very different from the old crocs, but people do not know what it is and that is part of the problem.

Alix steel, reporting their.

Thank you as always.

Is joining

This text has been automatically generated. It may not be 100% accurate.


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