Crocs Inc (Crox).
Crocs Incorporated designs, manufactures, markets and distributes footwear, clothing, and accessories for men, women and children across Europe, Asia and The Americas. The company's main focus is causal and athletic shoes, and shoe charms. In addition, Crocs makes boots, sandals, sneakers, mules and flats. Crocs also provides products for healthcare, service/hospitality, general foot care and diabetic needs markets, as well as ethylene vinyl footwear, action and adventure markets, snap-on charms, sandals and printed apparel for the beach. The company distributes directly to end consumers through its company-operated retail kiosks, outlets, and web stores. As of December 31, 2011, Crocs operated 158 kiosks, 180 retail stores, 92 outlets and 42 web stores.
5 year monthly chart
After going public in 2006, and experiencing a meteoric run (which included a 2 for 1 split) to $75, the company experienced growing pains, some bad press (media outlets reported that Croc's basic design was not safe for kids) and an impending recession. Shareholders watched as the stock slid to a low of .79c a share in late 2008, following a dismal earnings report.
It couldn't get much worse.
Since then, the company has made strategic changes, they've found their audience, and have executed to become a leader in the casual footwear industry.
With a market capitalization of 1.77B, a forward P/E of 15.86, 13.70% quarterly revenue growth and sales just above $1 billion, Crocs management believes that $2 billion in annual revenue is achievable in the next five years.
This company has industry leading margins, no debt and $257.59 million in cash.
Croc's derives 50% of it's revenue from its original design. However, they continue to innovate.
Now that they've built brand recognition, Crocs is expanding into golf, socks and the medical arena, etc. The Company currently has over 400 products for men, women, boys and girls (plus 528 Jibbitz add-ons).
Their most fertile market is China, which is where they believe the significant growth will occur.
The stock is currently trading at $19.10
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Disclosure*
Our hedge fund has a long position in CROX
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