A One-Hit Wonder Falls Off the Charts

Crocs. Your grandma might have a pair. Maybe the nurse at your doctor’s office too. Seems these brightly colored shoes/sandals are on everyone’s feet. In fact, the company sold 100 million pairs in seven years. And they had to keep ramping up production to meet demand. They spent big time on manufacturing plants and distribution centers.

Then came the recession.

The company posted a $185.1 million loss last year. It had to cut nearly 2,000 jobs. Its stock price plummeted 76 percent. All this just two years after posting a $168.2 million profit. And just three years after selling $200 million in shares to the public.

The moral of the story? Be skeptical of one-hit wonder companies. If their plan for the future is to keep riding the same fad, they are doomed for a quick decline.

But in the past 18 months, the company has faltered financially. Crocs lost $185 million last year, significantly curtailed its operations, experienced declines in shoe sales and stock value, is embroiled in an array of legal battles and has fallen out of fashion in some circles.

Some consumers, analysts, retailers — and even Crocs’ auditor — are betting against the company. Other experts are giving it a death sentence.

Meanwhile, Slate runs this piece titled, “Admit it – You Used to Wear Crocs.” Americans are really stupidly faddish. They will wear the most imbecilic things just because everyone else is wearing them. People ask why I hate them so much. They say three things to me: 

1) It’s a boom period, we got plenty of dough credit, so let’s shell out lots of money for another overpriced, mindless fad. (Wii comes after Crocs.)

2) Laziness

3) Slovenly

I can’t help but smile when thinking about what Mencken would have said about Crocs.