Sales at Crocs (CROX-$1.16) fell 32 percent in the third-quarter ended September 30 to $174.2 million, as the company experienced substantial declines in demand for its brightly colored clogs, largely attributable to reduced consumer spending, market share erosion to cheap knock-offs and counterfeits, and decreased foot traffic at shopping malls. Challenging global economic and retail environments aside, management is ignoring the reality that the novelty of its footwear, introduced in 2002, has worn thin. Further evidence that the lightweight, resin clogs are long past the maturity phase of their product life cycle can be found in [… continued … ]
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