I find it difficult to believe that with Crocs reporting a “blow out” quarter the stock falls due to a “build up in inventory”. I spent my entire 38 year career in retail and what they are reporting sounds exactly what they should be doing to be ready for their growth plans, especially overseas.
There are two methods to get inventory for your stores; You order as needed from a supplier and hope they can get the product to your stores on time.
You own the orders in advance and thus assure you have the product when your stores need it. Personally, I feel Crocs management should get a “pat on the back” for having enough “guts” to take the 2 option and thus assure their growth plans can be full filled.
-- Bill from Tennessee
Of course Bill is talking about Crocs which declined in Wednesday morning trading after the shoe company forecast 2008 profit and sales below expectations, and an analyst warned that inventory remains high. Separately, Crocs posted an 84 percent rise in fourth-quarter profit, as international demand for the colorful plastic shoes soared.
And that leads us to the reader poll. Do you think Crocs was a fad that's over? Tell us now.
Would you like to survey the Fast Money readers? Send us your question and it could become the next Reader Poll.
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