Archive for July, 2008
Here is the dress I wore yesterday.
At lunch, I ran over to Bed, Bath and Beyond to get a new laundry basket. When I was checking out the girl asked, “Is that Dereon?” I must of given her a very funny look because she next asked “Don’t you know who Beyonce is?” I nodded my head and said “No, it’s J.McLaughlin.” She proceeded to tell me how much is looked like House of Dereon and how much she liked it. I said thank you and left.
But I was curious as to what House of Dereon merchandise looked like.
From Bloomberg.com – Crocs Sinks on Concern Allure Is Fading as Sales Drop
Crocs Inc. plunged 45 percent in Nasdaq trading after the shoemaker forecast earnings lower than its previous prediction, raising concerns that it may not be able to sell its colored foam clogs profitably.
Crocs may post its first drop in sales since it sold shares to the public in 2006 as retailers cut back on orders. Yesterday’s decline contrasts with the sevenfold increase in the 20 months after the initial share sale, when investors bought on the hopes that forays into apparel and celebrity endorsements would sustain the company’s revenue growth.
“It brings up serious questions about their business model,” said Keri Spanbauer, a retail analyst at Minneapolis- based Thrivent Financial for Lutherans, which manages $73.2 billion of assets.
Crocs fell $4 to $4.95 at 4:01 p.m. in Nasdaq Stock Market composite trading, the biggest decline since its initial share sale in February 2006. That’s down 93 percent from the stock’s record high of $74.75 on Oct. 31. The shoemaker said retailers cut back on clog orders as U.S. consumers spend less.
With U.S. consumers tightening spending, Crocs’ brand isn’t strong enough to command prices four times those of its imitations, Spanbauer said. At Nordstrom Inc. stores, Crocs sell for $24.95 to $69.95 each. Similar clogs sell for as little as $5 on Wal-Mart Stores Inc.’s Web site.
International demand in the second quarter failed to make up for the decline in the U.S. or meet Crocs’ expectations, Chief Executive Officer Ron Snyder said today on a conference call with analysts and investors.
Sales rose 13 percent in Europe in the second quarter and 65 percent in Asia, Crocs said yesterday. For the first quarter, they more than doubled in Europe and advanced 93 percent in Asia. International sales accounted for 42 percent of Crocs’ total 2007 revenue, according to Bloomberg data.
Second-quarter profit dropped to 3 cents to 7 cents a share, while sales were $218 million to $223 million, Niwot, Colorado-based Crocs said. For the year, the company said it may break even, while revenue will be “down modestly.”
The clogmaker had 2007 sales of $847.4 million, more than double 2006′s $354.7 million. Earnings were $168.2 million, or $2 a share, up from $64.4 million, or 81 cents, the year before.
Analysts surveyed by Bloomberg estimated second-quarter profit, excluding some items, of 39 cents a share on sales of $248.2 million. For the year, they projected adjusted earnings of $1.68 on a 16 percent increase in revenue.
`It’s a Fad’
“It’s a fad, not an essential basic in the consumer’s wardrobe,” retail consultant Walter Loeb said in an interview. “Many people have Crocs and, particularly with the weak economy, consumers may not be interested in new Crocs this year.” Loeb is president of the Loeb Associates retail consulting firm in New York.
Sales growth in 2009 will be in the “high single digits” on a percentage basis, Snyder said on the call. The company fired 1,300 workers this year to reduce costs, primarily in manufacturing, to counter lower sales.
Crocs also is taking legal action against manufacturers imitating its shoe design. Some shipments of knockoffs were seized and destroyed, he said.
The U.S. market proved to be “more challenging” than the company anticipated, Snyder said yesterday in the statement. While Crocs fully sold its merchandise through many of its major accounts, retailers were “extremely cautious” with reorders, he said.
The footwear maker is shrinking itself to be profitable on the lower projected sales, and will cut costs throughout the year, Snyder said. The steps it already took, including closing a Canadian manufacturing facility and lowering headcount, were not enough to offset the slowdown in orders, he said.
The company needs to differentiate itself from imitators by better informing consumers about the shoes’ bacteria- and odor- resistant material, called Croslite, Spanbauer said.
“When you see Crocs displayed, you don’t see something that clues you in to the fact that it’s a really special type of material that it’s made out of,” Spanbauer said. “People are looking at the price these days more than brand, and that hurts them.”
Crocs first sold shares to the public in February 2006, offering 9.9 million shares at $21 each.
Established in 1999 by three Boulder, Colorado-based founders, including Lyndon V. Hanson, Crocs began selling shoes three years later. The clogs, which mold to the wearer’s feet and are ventilated so air passes through, initially were intended as boating and outdoor footwear. Crocs supplies its shoes to 13,500 U.S. stores and 95 countries.
The widespread availability of both Crocs — with their multiple holes and pliable texture — and their imitators is one of the company’s biggest problems, according to Spanbauer.
“It’s not only that Crocs are everywhere,” she said, “the knock-offs are everywhere.”
6:00 am – alarm
6:10 – eat non-fat, organic strawberry yogurt
6:15 -6:45 wonder what I am going to wear. Figure out to wear Lovestory Jeans, Brown James Perse t-shirt, and Brown Jimmys
6:50 – take shower
7:10 – Leave for work and watch my MPG on the screen in the Prius the whole way up Peachtree Road
7:30 – arrive at work
7:30 to Noon – work and sit on the phone. The phone is non stop these days.
Noon – run to Whole Foods Buckhead for food and eat it at my desk
12:30 – check Facebook and Bloomberg for the 1000th time
12:45 – have minor panic attack
1:00 – talk to installer for 4th time today. He is coming to see me from South Georgia to discuss ongoing material issues
2:15 – phone is now growing out of my ear
3:00 – Get IM message from E3 regarding “How to Protect Yourself from an Ostrich Attack”
4:05 – Installer arrives
5:35 – leave meeting with installer
6:05 – make self Makers Mark and Ginger Ale, drink at desk
6:10 – think to self that alcohol does make things better sometimes
Sorry I have not had anything fun or that exciting on here in awhile. We are cleaning house around here and dealing with some rather serious business issues that have come up over the last 2 months.
I don’t really care to be damned if I do or damned if I don’t. As a very competitive, competent, hardworking person, failure is not an option. Especially due to someone else’s shortcomings. I cannot abide someone going out of their way to make life difficult. It’s just a business relationship, nothing more.
Incompetency and being inept at life get you no where. And the Old Boys Club won’t always be there to save your ass.
I will never be part of that club. And don’t care. I am not built for chest bumping and crotch grabbing. But I will get the job done.
In the end that is all that matters.
Seriously, just stop. It’s rude. When I can have a baby I will.
Go consult Ms. Manners. You are out of line.
It’s like politics, we don’t talk about it.
I can see where they were coming from. I consider Tory Burch to be “unthinking fashion”, but I love it just the same. I am not into hunting, thrifting, remaking, waiting, so it works for me. If you put on a Tory outfit you know, for the most part, you are going to look good. And I am still not tired of my collection of Reva flats. They are the reason I started wearing flats again.
The same thought process could be said for other brands too. But today let’s focus on Tory.