Some years ago, my sister-in-law from Colorado was all atwitter about a new shoe that a local businessperson was selling in the Boulder area. She was telling everyone she knew about the shoes and sending them as gifts to family members.
My wife and I were very skeptical. Gaudy-colored plastic clogs? C'mon, there can't be much demand for something like that.
A few years and many millions of dollars later, I think it's safe to say that we were very very wrong. Today's WSJ reports that Crocs are now moving to the catwalk (sub req):
Crocs Inc., maker of the brightly hued plastic clogs that surged to popularity last summer, is quietly planning a surprising strategy aimed at avoiding fad status: a bold step into everything from women's fashion footwear to apparel.
Yet many on Wall Street aren't convinced Crocs can continue at its torrid pace, which has seen its sales rocket to an expected $338 million in 2006 from just $1.2 million in 2003 and its stock soar to more than $54 from its $21 offering price in its debut a year ago. As of last month, roughly 30% of its outstanding shares were held by short sellers looking to profit from a decline in the share price if Crocs ends up a one-hit wonder.
Even if Crocs is not able to continue its remarkable run, it still is incredible to me that these unusual shoes could go from kiosk carts at local malls to worldwide distribution in what essentially is the blink of an eye.
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