Pedestrian Shops Blog

"Crocs Inc. earned $4.1 million, or 12 cents per diluted share, on revenue of $33.6 million in the fourth quarter of 2005, the company reported Thursday.

That compared with a loss of $1 million, or minus 4 cents per share, on revenue of $5.4 million in the same quarter a year earlier.

Crocs Inc. (NASDAQ: CROX) is a Niwot-based footwear maker that went public with much fanfare on Feb. 13. The company priced its shares at $21 and received approximately $97 million from the IPO.

For the full year 2005, Crocs earned $16.7 million, or 51 cents per share, on revenue of $108.6 million. That compared with a net loss of $1.6 million, or minus 7 cents per share, on revenue of $13.5 million in 2004.

Crocs reported earnings after the market close Thursday. The stock closed down 30 cents, or 1.12 percent, at $26.60. Since its debut, CROX has traded as high as $32.50."

Read the entire article, Crocs reports profitable Q4, published in the Denver Business Journal at (http://www.bizjournals.com/denver/stories/2006/02/27/daily65.html)

Excerpt:
"When sentiment turns negative the market yields bargains, and one such deal is footwear-maker Crocs (CROX:Nasdaq - commentary - research - Cramer's Take), Jim Cramer said Wednesday on CNBC's "Mad Money" show.

"Sometimes the market just gives you a great deal. You gotta take it," Cramer said. Crocs, a maker of light-weight, odor-resistant shoes, came public last week at $15 and traded to $30 on its first day. Since then, the stock has been caught in the market's downdraft; it closed Wednesday at $28.

"There was no way Crocs was gonna catch fire when the market was getting beat up," Cramer said. If not for the general malaise, "Crocs would be trading at $35, and that's where I think it's going to go." Cramer highlighted the shoe-maker's 57% gross margins, solid unit growth, and profitability.

"They have a stylish product that's in demand and doesn't have a lot of competition." Cramer said, adding that he sees "seven points of upside and maybe just a couple of downside.""

Read the entire article, Cramer's 'Mad Money' Recap: Beat a Path to Crocs, written by thestreet.com staff for thestreet.com at (http://www.thestreet.com/_googlen/funds/madmoneywrap/10268690.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA)

Excerpt:
"Crocs Inc. (CROX: chart) priced 9.9 million shares at $21 per share on Thursday. The price came above the expected range of $19 - $20. On Monday the company increased the number of shares from the original filing of 9 million and its price forecast from an earlier range of $13 - $15 per share. The offering was worth $207.9 million.

Crocs offered 4.95 million shares of common stock and selling stockholders sold the remaining 4.95 million shares.

In addition, the selling stockholders have granted the underwriters a 30-day option to purchase up to 1.5 million additional shares to cover over-allotments.

Piper Jaffray and Thomas Weisel were the lead managers with SG Cowen, BB&T Capital Markets, D.A. Davidson and Wedbush Morgan Securities serving as co-managers for the offering.

The Niwot, Colorado-based company started selling its resin shoes in 2002, and rapidly became a cult hit in its home state.

Crocs reported net income attributable to common shareholders of $12.6 million on $75 million in sales for the nine months ended Sept. 30, compared with a net loss of $627,000 on sales of $8.1 million a year ago.

Crocs debut is the second strong performance on the U.S. IPO market this year for a Colorado-based company. Last month, shares of Denver-based Chipotle Mexican Grill (CMG: chart) gained 100% in their first day on the New York Stock Exchange.

The stock closed the first day at $28.55, and ended the week at $26.55, up 26.4% from the offering price."

Read the entire article, Another Active Week for IPOs, written by Yordanka Bahchevanska for 123jump.com Financial Markets at (http://www.123jump.com/market-update/Another-Active-Week-for-IPOs/16664/)

"Chefs love 'em. So do doctors and nurses, office workers and athletes, gardeners and boaters, kids and senior citizens.

In fact, it's beginning to seem that everyone loves Crocs, the comfy-cool clogs that are stomping all over the footwear market.

"It's really a diverse group of people. Anyone from a three-year-old to 103-year-old," says Tia Mattson, public relations manager for Crocs at their head office in Niwot, just outside Boulder, Colo.

Crocs come in 17 colours and are made from a material called Croslite, which is neither plastic nor rubber.

"We have doctors and nurses who wear them for their medical benefits, and doctors and nurses who prescribe them for their medical benefits," she adds.

Crocs have plenty of celebrity fans, too. Among them are Iron Chef Mario Batali, who is never without his trademark orange Crocs, actor Matt Damon, country music superstars Faith Hill and Tim McGraw, and several hockey players, including the Philadelphia Flyers' Peter Forsberg, the recently retired Mario Lemieux and all the Pittsburgh Penguins, who wear them in their team colours.

Crocs are so popular that stores can't keep them in stock. Manufacturers can't keep up with demand. Customers who've bought one pair keep buying more and more, adding their names to ever-growing waiting lists.

"They sell so fast it's unbelievable," says Gary Gerlach, who sells Crocs at his Riverside Coffee House in Bridgeland.

"I've been getting 50 to 100 calls a week from people looking to buy Crocs," adds Mike Yarrow, who carries the shoe at his Intersport stores in North Hill and Market Mall.

The industry loves Crocs, too. Crocs won the prestigious 2005 Brand of the Year award from Footwear magazine. And they've inspired a number of imitators, such as Holey Soles and Airwalk.

Buoyed by all this success, the company announced last year it would be making an initial public offering of stock, likely in 2006, under the symbol CROX.
The question is: Why has everyone gone so crazy for what is arguably one of the ugliest shoes around?

That's easy. It's also the most comfortable shoe around.

Crocs were introduced in 2003 as a boating shoe, a lightweight, slip-proof clog punctured with holes to let water drain from them. Not surprisingly, they're named for the crocodile, which is tough, long-lived and equally adept in water and on land.
Crocs are made of a proprietary material called Croslite, which is neither plastic nor rubber, but a closed-cell resin that is often described as "spongy" because it softens with body heat and moulds to the user's feet.

Croslite is also microbial, so Crocs are resistant to the bacteria that cause the kind of foot odour that has relegated your old Tevas to the garage.

Crocs' so-ugly-it's-adorable styling is based on European design. They come in seven different styles (only the Beach is widely available in Canada), in sizes from kids 8/9 to men's 13, and 17 colours ranging from basic black to vivid shades of lime, coral and fuchsia.

Each pair of Crocs is designed with such happy-feet features as orthotic heels, built-in arch supports, tarsal bars, circulation nubs, air ventilation ports and heel straps that can be rolled forward to create a clog or rolled back to keep the shoes firmly on your feet.

All this, and they only cost around $30, depending on the style.
(The imitators cost quite a bit less: Holey Soles, for instance, retail for $16 at Mountain Equipment Co-op. However, although the imitators look and feel similar, they are not made with Croslite, which is exclusive to Crocs. Nor do they have the ankle strap or the cute little crocodile logo.)

Crocs converts all tend to have stories like Gerlach's.

"I was helping this fellow sell them in the Roundup Centre (during Stampede last July)," he recalls. "I'd already bought a pair, and I was doing 18-hour days between opening here and closing there. I wore the Crocs for 10 days, and other than being tired, it was surprising how good I felt."

After that, he started carrying the clogs in his cafe. He's still wearing his original pair, but his wife Carole, who is also his business partner, has four pairs. Their daughter has five and is on the waiting list for a sixth.

On the Crocs website (www.crocs.com), you'll find dozens of testimonials like the Gerlachs'.

"I have never had a pair of shoes that were so comfortable that I was able to work a 13-hour shift and have my feet feel like heaven," writes a waitress named Melissa.
"I have had three knee-reconstructive surgeries, a surgery on my foot, and not one shoe has ever helped the way my Crocs have," writes a teacher named Sean.
"I have spent hundreds of dollars trying to find shoes that would not kill my feet after working 12 hours in an emergency room. . . . Crocs in our hospital look like a required part of our uniform, they are so popular," writes a health-care worker named Georgie.

"What a godsend!" writes a janitor named Rudy. "These are the perfect shoes!!! Where in the world were these shoes when I started as a custodian nearly 15 years ago?"
Hockey players love to slip their aching feet out of their skates and into a pair of Crocs.

Campers and gym rats love them because they protect them from the bacteria on the floors of communal showers.

Gardeners love them because mud rinses right off.

Even office workers love them because they're just so darn comfortable. Last fall, staffers in the Prime Minister's Office in Ottawa made news when they wore their bright Crocs to work on Parliament Hill.

"There's lots of professionals out there wearing them for work," Gerlach says.
"I have one gentleman who works for the government of Canada. He has his third pair on order. He wears them every day in the office, and he's already worn one pair out."
He's even heard of customers who've worn them hiking in the mountains.

"These people come back and tell you these little stories. Every time you think you've heard it all, they come back and tell you something more," Gerlach says with a laugh. "They're neat. They're just a great shoe.""

Read the entire article, Crazy for Crocs: The ugliest shoes you'll ever fall in love with, written by Joanne Sasvari for the Calgary Herald at (http://www.canada.com/saskatoonstarphoenix/story.html?id=b52b178f-920a-4a2c-b402-85d1ad59a130&k=34018)

" LAS VEGAS, Feb. 9 /PRNewswire-FirstCall/ -- CROCS(TM) Inc.,
(Nasdaq: CROX) manufacturer of a new breed of comfort shoes, today introduced
a fashionable women's model, the Prima(TM) and the Kids line of the Athens(TM)
flip-flop model, to join its line of footwear offerings at the World Shoe
Association Show February 10 - 13, 2006, at the Sands Expo Center in booth
#956. In addition, CROCS will unveil three new colors -- turquoise, metallic
gold and metallic silver -- expanding the vibrant CROCS palette to 20 color
offerings.
The ballet-inspired Prima model features CROCS' exclusive
proprietary closed cell resin, Croslite(TM), which warms and softens with body
heat, while molding to the foot. The sculpted footbed has been ergonomically
enhanced for maximum cushion and comfort. The fashion forward and
slim-fitting Prima is an innovative addition to CROCS' unique line of
lightweight, non-marking, odor-resistant footwear. The Prima, available at
select retailers in Summer 2006, will come in women's sizes (4-12).
The Kids Athens model brings the comfort and style of the
adult Athens flip-flop to children. The Kids Athens will come in six fun
color combinations and will be available in children's sizes (12-3). The
shoes will be available at retailers in March 2006.
CROCS' expanded color offerings include two metallic shades, gold and
silver, as well as turquoise. The new metallic colors will be seen across
four CROCS shoe models and will be available at select retailers in Summer
2006.
"Expanding our offerings to include the Prima and Kids Athens models will
enhance our current line-up and offer shoes perfect for savvy trendsetters and
children on the go," said Ron Snyder, CEO of CROCS Footwear. "We remain
committed to comfort and function with these new models, which both feature
our proprietary Croslite resin that offers the ultimate in comfort and
function."

About CROCS(TM):
CROCS Founders dreamed about the perfect boat shoe. They wanted fashion,
function and fun in an extremely comfortable shoe.
In just three years, CROCS has become a phenomenon all its own, loved by,
doctors, chefs, athletes, outdoor enthusiasts, celebrities, families and of
course -- boaters. In 2005, Footwear News, a leading footwear trade
publication, named CROCS "Brand of the Year" to honor the company's success in
the retail industry and the overwhelmingly positive response to the brand from
consumers. Previous winners of this prestigious award, include Jimmy Choo,
Christian Louboutin and Puma.
Hop on a boat, stroll on the beach, or walk to a meeting, and you'll see
that CROCS shoes are the most comfortable and versatile shoes you'll ever own.
CROCS are a new breed of footwear that provides comfort and performance
through its unique materials and designs. All CROCS shoes feature CROCS'
proprietary closed cell resin, Croslite(TM), which warms and softens with body
heat and molds to the user's feet. The European styling of the orthotic heel,
built-in arch support, and tarsal bar position your feet for the ultimate in
foot comfort and health. CROCS are perfect for boating, diving, water sports
and every day wear. They will not mark floors or boat decks and are ideal for
people who are on their feet all day and need light, comfortable shoes. CROCS
are sold in more than 6,500 North American retail locations and come in a wide
array of colors and styles."

Read the entire press release at http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/02-09-2006/0004278362&EDATE=

"Crocs' stock rocked Wednesday at a coming-out party that marked the largest footwear IPO in history.
The Niwot-based company's shares jumped 36 percent to close at $28.55 on its first day of Nasdaq trading under the symbol CROX. Only Denver's Chipotle Mexican Grill has recorded a bigger first-day IPO trading gain this year.

"You guys are two for two," Thomson Financial's Rich Peterson said of Colorado's 2006 IPO successes. "It's probably indicative of (investor) movement toward consumer products."

Raising roughly $208 million, Crocs' initial public offering topped that of any other shoe manufacturer in decades past. In 1993, Nine West's IPO raised $140 million, while Fila Holdings drew $135 million the same year. Reebok and Converse also trailed the size of Crocs' take.

The stock opened at $30 a share, well above the $21 offering price and even a tad higher than a pair of the company's popular shoes, most of which sell at retail shops for about $29.99.

Crocs CEO Ron Snyder and other company executives gathered around computers Wednesday morning on the trading floor of lead banker Piper Jaffray Cos. in Minneapolis to watch the stock begin its ascent.

Snyder described the process of going public as "exhilarating and exhausting" but said he wanted to "get back home and get back to work."

Snyder declined to comment on the company's recent disclosure about weaknesses in its financial reporting. He mainly stuck to scripted statements about the company, referring to regulations that limited his ability to comment during the IPO process.

"The most important thing for us is to continue making great shoes that people love and can't live without," Snyder told the News in a telephone interview.

To mark the occasion, Snyder said he was wearing a new-model pair of "off-road" Crocs introduced recently at the Outdoor Retail Show. "Black ones - the investment banker color - with a red strap on the back," Snyder said.

It was all Crocs on deck for the rest of the company's executive team and for Piper Jaffray employees, who also sported the shoes in a variety of colors on the trading floor.

Crocs was founded in 2002 by a trio of Boulder friends who decided to start a new company to sell a comfortable, slip-resistant and waterproof shoe for boating.

But the colorful resin clogs, sold in a rainbow of bright hues, quickly developed a following among both males and females in a wide range of age groups.

The lightweight shoes soften from body heat, helping them mold to their owners' feet while they are worn. The resin they are made from is antimicrobial, which means the shoes tend not to pick up foot odors after lots of wear.

Given the continued popularity of its shoes in the past few years, observers have high hopes for Crocs.

"They're definitely not a fad," said Madeline Temple, consumer strategist with Iconoculture, a Minneapolis-based research and advisory firm. "They're very much resonating with people."

Temple, who follows fashion trends, says comfort has been the most important factor in Crocs' runaway success.

"Beauty is in the eye of the beholder," she said when asked about those who mock the shoes' odd look.

The company, which plans to use the money raised in the IPO for working capital and to pay off debt, has worked to meet continued strong demand for its shoes. Their popularity has left many stores with limited supplies and long wait times for new shipments.

But Crocs has contracted with a number of third-party manufacturers around the world to supplement its own production facilities.

"We have dramatically ramped up our production over the past year and a half," CEO Snyder said.

Mythbusting

Crocs shoes have inspired their own lore.

• Not good for you: Urban legend has it that lost hikers have eaten the shoes for nourishment. If so, they shouldn't have, because Crocs are made from an antimicrobial resin, with no nutritional value.

• Better fit: Another myth says you can heat up the shoes in the microwave to shrink them. "We'd rather you buy a pair that fit better," a company spokeswoman says."

Read the entire article, Off and running: Niwot-based Crocs' shares jump 36% in historic shoe IPO, written by Joanne Kelley for the Rocky Mountain News at (http://www.rockymountainnews.com/drmn/money/article/0,2777,DRMN_23908_4452053,00.html)

"There's the delectable scent of money in the air in Boulder today, as the long-awaited initial public offering of Crocs, the rubber-clog company based just up the road in Niwot, has gone off like gangbusters.

The stock (ticker symbol CROX) was priced at $21 a share, already above its original price range of $13-$15, and opened at $30. It has since climbed as much as 40 percent. Crocs founder George Boedecker Jr. and his partner, high school chum Lyndon Hanson, both Boulder natives, sold about half the shares on the open market and half to friends and family, which means the local Land Rover dealer can expect a busy weekend.

Crocs is one of only a handful of companies to see their share price actually open above a forecast price that had already been raised. After the roadshow, in which Crocs executive toured to promote the IPO to big investors, the number of shares was raised by 10 percent to 9.9 million and the price went up to $19-$20.

I've expressed my slight doubts about Crocs – essentially a footwear fad – as a long-term company. The company holds a patent not on the shoes' distinctive design but on the material, a rubbery closed-cell resin. Crocs is said to be looking for other applications for the stuff, while much cheaper knockoffs fill the discount aisle at Target. Sources on both Wall Street and Pearl Street also harbor some concerns about the company's phenomenal growth curve.

But this is not a day for skepticism. Those of us not in on the stock rush can only look on and congratulate the entrepreneurs behind Crocs – and hope for some economic runoff effect."

Read the entire article, Crocs Goes Public; Investors Go Crazy, written by Richard Martin for NewWest (Missoula,MT) at (http://www.newwest.net/index.php/city/article/6037/C94/L94).

"Footwear manufacturer Crocs Inc has announced that its initial public offering of 9,900,000 shares of common stock has been priced at $21.00 per share.

Crocs is offering 4,950,000 shares of common stock and selling stockholders are offering the remaining 4,950,000 shares. In addition, the selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 1,485,000 shares at the initial public offering price to cover over-allotments.

The company will not receive any of the proceeds from the sale of shares by the selling stockholders. Crocs Inc common stock will be listed on the NASDAQ National Market under the symbol ‘CROX.’

Piper Jaffray and Thomas Weisel Partners LLC are serving as joint book runners with SG Cowen & Co, BB&T Capital Markets, D.A. Davidson & Co and Wedbush Morgan Securities serving as co-managers for the offering.

Crocs Inc is a rapidly growing designer, manufacturer and marketer of footwear for men, women and children under the CROCS brand. All of the company's footwear products incorporate its proprietary closed-cell resin material, which the company believes represents a substantial innovation in footwear comfort and functionality.

The company's proprietary closed-cell resin, which it refers to as Croslite(TM) enables Crocs to produce a soft and lightweight, non-marking, slip - and odor-resistant shoe. These unique properties make the company's footwear ideal for casual wear, as well as for recreational uses such as boating, hiking, fishing and gardening."

Read the entire article, USA : Footwear retailer Crocs Inc goes public, featured on www.fibre2fashion.com (India) at (http://www.fibre2fashion.com/news/fashion-news/newsdetails.aspx?news_id=12385)

"NEW YORK (MarketWatch) -- Crocs Inc. shares jumped 35% Wednesday in their first day of trading after the casual shoe maker's shares priced ahead of an upwardly revised offering price.

stock-market debut.

Crocs (CROX:, , ) opened at $30 a share, well above its $21 price. The stock closed at $28.55, on strong volume of almost 12 million shares.

Signs of a strong start came after the IPO priced above what had already been an increased range of $19 to $20 a share.

With 9.9 million shares in the deal, Crocs raised $208 million as the richest U.S. footwear IPO ever, ahead of the $140 million IPO that Nine West generated in 1993, according to Thomson Financial.

Despite the company's quick rise, footwear industry insiders don't expect Crocs to cool off in the near future.

"There's still some room to grow with their product lines," said Michael Atmore, editorial director of Footwear News. "The question is what they'll do to grow the brand."

Atmore pointed out that Crocs faces the same problem as many others in the footwear business -- quick proliferation of "knock-off" copies of successful shoes.
Common tactics used to foil imitators include lawsuits, product claims of originality by the leading brand, and quick innovation into new products, he said.
Crocs (CROX:, , ) said it's offering 4.95 million shares and selling stockholders -- including Sandstone Ventures, Multiventure Technologies, Donald LoCoco and Altima Holdings Ltd. -- are offering a similar amount.

Eslewhere in the IPO market, Internet telephony firm Vonage filed to raise up to $250 million in an initial public offering. See full story.

In a sign of the degree of pre-IPO demand, Crocs on Monday had increased the price of its shares from its earlier $13-to-$15 range and fattened the number of shares in the deal from 9 million.

The price increase came as Crocs reported revenue of $33 million for the fourth quarter of 2005, nearly half the level of $75 million for the first nine months of the year. Revenue for the first nine months of 2004 was $8.1 million.

For the nine months ended Sept. 30, Crocs reported net income of $12.6 million against a loss of $558,000.

The Niwot, Colo., company began marketing its first model in November 2002 and now offers 11 models in as many as 18 colors.

"Our proprietary closed-cell resin, which we refer to as croslite, enables us to produce a soft and lightweight, non-marking, slip- and odor-resistant shoe," Crocs said in its IPO filing.

Selling a product that appeals to outdoor enthusiasts puts Crocs in a vein similar to Zumiez (ZUMZ, , ) , Volcom (VLCM:, , ) and Under Armour (UARM:, , ) , three of 2005's more successful IPOs.

Interest in IPOs from consumer brands overall has been strong of late, with Chipotle Mexican Grill (CMG:, , ) (MCD:, , ) hammering out big gains and others from Tim Hortons, owned by Wendy's International (WEN:, , ) , as well as MasterCard International and Burger King on deck this year.

Crocs grew its business by acquiring Foam Creations, which helped it ring up, on a pro-forma basis, revenue of $16.9 million for all of 2004. For that year, Crocs had a loss of $1.1 million.

Underwriters Piper Jaffray (PJC:, , ) and Thomas Weisel (TWPG:, , ) jointly managed the deal. "

Read the entire article, Crocs jumps atop upped price: Company marks richest U.S. footwear IPO ever, written by Steve Gelsi for Market Watch from Dow Jones at (http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B65AB6B32%2DB35E%2D493E%2DB505%2DD8E6BCD061C8%7D&siteid=google)

"Richard Polk has seen shoe trends come and go.
He's even seen some come, go, then come back again.

Polk, who began selling Earth shoes at the Pedestrian Shops in Boulder in 1969, today has a 750-square-foot room in his Pearl Street store set aside just for Crocs.

"These shoes are sexy and whimsical," Polk says of the brightly colored resin-based shoes that took the 2005 title of Ugly Shoe of the Year at footwear blog Shoewawa.com.

Crocs, whose shares will be sold on the Nasdaq today, are the relative newcomers to his 35-year-old business.

His two shops boast about 50 brand names, including Birkenstock and the new Earth shoes. Forget Jimmys and Manolos, though - these shoes are built for comfort first, with style often an afterthought.

Earth shoes, meant to be strictly utilitarian in their first incarnation in the late '60s and early '70s, disappeared from the scene for about 25 years before coming back earlier this decade.

The shoes feature "negative heel" technology. Simply put, the shoes are higher in the toe and lower in the heel, which is supposed to both make the wearer stand more naturally and burn more calories when walking.

With new styles, the shoes have made news of late because some celebrities including Gwyneth Paltrow have taken to wearing them.

Birkenstock, a perennial favorite since the 1970s, has also added new models to the original two-strap Arizona sandal that many think of when they hear the name.

The shoes' technology dates back to an 18th century German inventor, and U.S. sales of the shoes began spiking in the 1970s after a California entrepreneur brought them back from Germany to distribute here.

Some shoe sellers say Crocs may be a factor but that there are other forces, especially better overall shoe technology, driving a demand for more comfortable footwear.

At Saxon Shoes in Richmond, Va., Gary Weiner sells Crocs and Birkenstock next to Cole Haan and Calvin Klein. Weiner also is vice president of footwear brands for Greenwood Village-based eBags, which runs online shoe retailer 6pm.com.

Comfortable shoes have often attracted a different crowd than the "fashionable at any cost" contingent, Weiner said.

"I think that person is probably wearing jeans a little bit more, maybe doesn't dress up as often, but they're comfortable in their own skin," he said. "A lot of these comfort shoes are not what some people would consider pretty, but we say if it feels good, it looks good."

Attitudes seem to be changing, though, said Weiner, one of the earlier East Coast retailers to stock Crocs.

"There are some people who will buy $300 shoes and $30 Crocs in the same visit," he said.

Shoemakers are starting to address a growing demand for both comfort and style, he said. The result - more fashionable Birkenstocks and Eccos alongside increasingly comfortable high-fashion styles.

"I think the demand for comfort is going to continue to grow and grow - not that there won't be fashion shoes, but even the fashion shoes will have comfort features," he said.

What they're saying

So what's the buzz on the Internet about Crocs' planned initial public offering? As the Niwot-based shoemaker gears up for its first day of share trading today, the financial media sounded off on whether Crocs will find a good fit in the market.

• Market Watch on Monday noted that Crocs is gearing up to be "the biggest footwear IPO in U.S. history, ranking ahead of Nine West's $140 million offering in 1993," citing Thomson Financial. "Selling a product that appeals to outdoor enthusiasts" puts the footwear maker in the company of Zumiez, Volcom and Under Armour - three of last year's more successful IPOs.

• Investors Business Daily also likened Crocs' IPO to that of Under Armour - whose share offering "gave Wall Street a minor attack of hysteria," the paper said.

"Crocs no doubt hopes the Street will see parallels," the Tuesday article said. "And while the product line only launched in 2002, if you hang out with young folks these days you'll likely see Crocs' distinctive shoes on somebody's feet." Still, Investors Business Daily also cautioned that Crocs has only a few years of operating history under its belt, which "might be a reason it failed to sign on the top investment banks as underwriters."

• Forbes.com was a bit less sanguine, saying Crocs has a limited operating history and its "management team is new, unproven and managing growth can be difficult." While noting that the company has done well so far, writer Scott Reeves observed that "it's bound to flub sometime in the future. Volatility is almost routine in an IPO, but a major mistake could hammer Crocs.""

Read the entire article, Many shoe buyers find comfort soothes the sole more than style, written by Janet Forgrieve for the Rocky Mountain News at (http://www.rockymountainnews.com/drmn/other_business/article/0,2777,DRMN_23916_4449296,00.html)

"Crocs makes its shoes in 18 different colors, but all investors are seeing is green.
The Niwot-based company jacked up the price and size of its IPO on Monday after seeing strong Wall Street demand for its stock. Crocs had planned a $144 million offering, pricing its shares at $13 to $15.

The company added more than a million shares and increased the price to $19 to $20, a potential $227 million offering. The value of the company would top $700 million at those prices.

The final word isn't in, however - Crocs will make its final pricing decision tonight for Wednesday's trading. Given the investor excitement, Crocs' stock may continue its rise.

"Interest kind of mushroomed," said Francis Gaskins, the editor of a Web site called ipodesktop.com, which has made Crocs its "pick of the week." Gaskins said a heavy recent calendar of offerings may have distracted some of the Wall Street firms that typically invest in consumer-goods companies. "People started to look at Crocs seriously at the end of last week."

What they see is a company that increased its sales 822 percent in the first nine months of 2005 from the prior year. It swung from a loss to net income of $12.8 million. It has gross profit margins of 57 percent and operating margins of 27 percent through the first nine months. And it sold more than 6 million pairs of shoes in 2005.

Right now, the company's trailing price-to-earnings ratio is about 35 to 37, meaning the stock is priced for rapid growth.

"In a short amount of time, we've become a pretty important brand in the footwear industry," Crocs CEO Ron Snyder told Wall Street investors last week on its IPO "roadshow."

"We've had explosive growth since inception, and we do have multiple opportunities to continue to grow the company going forward," Snyder said.

Snyder showed Wall Street pictures of its 2006 model shoes, as well as pictures demonstrating its "broad demographic appeal" from ages 2 to 102.

One Swedish advertisement Snyder showed has ex-Avalanche player Peter Forsberg, while another photo has actress Heather Locklear in front of a big rack of Crocs.

"I think our shoes make her look pretty good - what do you guys think?" Snyder asked.

As Crocs' shares begin trading on the Nasdaq on Wednesday, company executives plan to gather around a computer in the Minneapolis offices of lead banker Piper Jaffray & Co., spokeswoman Tia Mattson said.

Afterward, they will head to Las Vegas for the start of the annual trade show of the World Shoe Association, one of the largest trade gatherings for the company.

Doubters wonder if Crocs have long-term appeal. Renaissance Capital's IPOHome.com Web site, which also features Crocs as its featured IPO, said it believes "longer term, this is a risky company since its products appear faddish, competition is fierce, and visibility into its future success is low."

But Brian Robinhold, a Boulder resident who has mostly invested in the hometown tech industry, sees an opportunity.

"All the kids in my neighborhood are wearing them, they say all their friends at school are wearing them, my 3-year-old is wearing them, and I'm wearing them," Robinhold said. "It seems to have a lot of potential.""

Read the entire article, Many investors see Crocs as shoo-in, written by David Milstead for the Rocky Mountain News at (http://www.rockymountainnews.com/drmn/money/article/0,2777,DRMN_23908_4446564,00.html)

"Crocs Inc. on Monday raised its expected price range for its initial public offering to $19-$20 per share from $13-$15 a share, according to a filing with the Securities and Exchange Commission.

The Niwot-based maker of colorful rubber and plastics footwear, which could go public as early as Wednesday, also increased the number of shares it plans to offer, to 9.9 million shares from 9 million.

Half the shares will be sold by the company, and stockholders will sell the other 4.95 million shares, the company said in an SEC filing.

The shares will debut on the Nasdaq under the ticker symbol "CROX."

Read the entire article, Crocs raises price of initial shares, written in the Denver Business Journal at (http://denver.bizjournals.com/denver/stories/2006/02/06/daily11.html?jst=b_ln_hl)

"NEW YORK (MarketWatch) -- While there are several promising IPOs on this week's calendar, we decided to focus on innovative footwear designer Crocs because of the tremendous consumer demand for its shoes and strong potential for growth -- at least near term.

Crocs (CROX:, , ) and existing shareholders each plan to sell 9.9 million shares on the IPO at a range of $19 to $20, after boosting the price from $13 to $15 and increasing the size of the IPO from 9 million.
Proceeds will be used to repay outstanding debt and fund expansion.
Underwriters Piper Jaffray (PJC:, , ) and Thomas Weisel (TWPG:, , ) are acting as joint book-running managers for the deal, which is expected to price on Tuesday for its market debut on Wednesday.

For those of you who may be unfamiliar with the story, Crocs designs and sells branded footwear for men, women and children. Its products are made of closed-cell resin ("croslite") and are optimal for casual wear or recreational uses such as gardening, hiking or boating because they are light, soft, non-marking, and odor-resistant.

The shoes come in 11 different styles and 18 bright colors at prices ranging from $29.99 to $59.99, and are available at over 6,200 domestic and 1,200 international locations, including Sports Authority, Dick's Sporting Goods, Cabela's, Nordstrom, and select Whole Foods Hallmark and Barnes & Noble stores.

Crocs also offers products on its Web site and through 50 company-operated kiosks located in high foot-traffic areas. To further drive brand awareness, Crocs recently introduced select branded apparel and accessories, including sunglasses, hats, socks and T-shirts.

Crocs introduced its first branded shoe in November 2002 based on a concept designed by Foam Creations, a consumer-products maker, which it acquired in 2004 for $6.9 million.

Based on its initial success, Crocs launched 10 additional models, brought in a veteran management team and increased sales from $14 million in 2004 to $108 million in 2005.

In 2005, Crocs developed an industry-leading margin profile thanks to significant volume growth and low-cost manufacturing. It hopes to gain a foothold in the $39 billion U.S. and international footwear markets by expanding its existing retail network, adding new customers and kiosks, and increasing brand awareness through targeted marketing.

Key risks to the story

While it experienced enormous growth in 2005 and demand appears to be strong going into 2006, we believe longer term, this is a risky company since its products appear faddish, competition is fierce and visibility into its future success is low.
In addition, its strong growth has presented operational challenges, such as supply shortages and internal control issues, which management has yet to overcome.
Lastly, management just announced on Feb. 3 that a new CFO has come on board to replace Caryn Ellison, who will step down to become vice president of finance. While we do not question the accuracy of Crocs' financial statements and acknowledge that Peter Case has public company experience, we were a bit surprised about the timing of the announcement so shortly before the IPO.

The bottom line

Despite our concerns over its long-term sustainability in the competitive shoe market, we believe Crocs will have a solid market debut because of its attractive valuation and the successful IPOs of other hyper-growth companies in the retail space, including Volcom (VLCM:, , ) , Zumiez (ZUMZ:, , ) and Under Armour (UARM:, , ) . This group generated an average first day pop of 58% and a total return of 162%. "

Read the entire article, Crocs is IPO of the Week Commentary: Renaissance Capital eyes footwear maker written by Renaissance Capital for Market Watch from Dow Jones at (http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BFFDDB56D%2DCE7F%2D4A64%2DB69F%2D4DDCAB912321%7D&siteid=google)

"Investors will find out next week if Crocs' stock rocks.
The Niwot-based shoemaker plans to sell its shares to the public next week in an initial public offering. Web site IPOdesktop.com says it expects Crocs to price shares on Tuesday and begin trading Wednesday.

The company plans to sell 9 million shares at a price in the range of $13 to $15. The company will get the money from half - about $63 million, prior to expenses.

The other half of the shares are being sold by insiders. If investors demand more Crocs stock, the insiders will sell another 1,350,000 shares.

All told, the company, which makes brightly colored clogs from a patented resin, would be worth about $550 million at $14 per share.

But another Colorado company with a hot consumer product - burrito seller Chipotle - blew through its initial price estimates.

It, too, started out estimating a total value of about $550 million. Chipotle then bumped up its offering price twice before jumping 100 percent in its first day of trading. It's now a $1.5 billion company.

The key difference between the two is Chipotle's relatively long history - it was founded in 1993 - and its big sales, which were $454.4 million for the first nine months of 2005.

Crocs was founded in 2002 and posted just $1.2 million of revenues in 2003.

But it's exploded since. Sales were $13.5 million in 2004, then $75 million in the nine months ended Sept. 30, 2005. A small 2004 net loss turned into net income of $12.8 million in the first nine months of 2005.

Robert Barker, a BusinessWeek investing columnist, named Crocs one of four 2006 -IPOs that "caught his attention." (Chipotle didn't make the cut in his late-December column.)

"Crocs shoes are hot, so this issue is going to run fast - until the trend cools," Barker said.

Crocs acknowledges the risks in its SEC filings for the stock offering. It notes it's "an early stage company with a limited operating history . . . subject to all of the risks inherent in a new business enterprise."

Crocs shoes represented 94 percent of the company's revenues in the first nine months of 2005. "Given the limited history of our Crocs brand, it is especially difficult to evaluate whether our products will hold long-term consumer appeal," it said.

Crocs also warned that audits of its 2002-2004 financial statements uncovered "material weaknesses" in its financial reporting. These are major problems that, if not fixed, make the reliability of its future financial statements in doubt.

Friday, Crocs said it had hired three more professionals to beef up its finance staff.

Peter S. Case, the chief financial officer of Nasdaq-traded sportswear company Ashworth Inc., starts Monday as senior vice president-finance. By April, Crocs said, he'll replace Caryn D. Ellison as CFO.

Ellison, who joined Crocs in November 2004, will become vice president-finance.

Crocs also hired a new corporate controller and a director of internal audit. It did not name either. The current corporate controller resigned from his position to return to public accounting, the company said.

"We believe that the new employees . . . will enhance our finance and accounting staff," the company said in a statement."

Read the entire article, Crocs Rides IPO Wave written by David Milstead for the Rocky Mountain News at (http://www.rockymountainnews.com/drmn/money/article/0,2777,DRMN_23908_4440862,00.html)

"Fashion victims are a courageous if not foolish bunch; no matter how ludicrous the fad they are happy to wear it with pride. So when I first saw a fashion fundi swanning around in a pair of Crocs I couldn't help but snigger. Who in their right mind would willingly wear a clumsy-looking pair of plastic clogs?

Any fashionista worth their salt, it turned out.

Everywhere you go you see some trendoid sauntering about town in a pair of these shoes. While they sort of recall the "jelly" shoes that enjoyed limited success in the late eighties, this American brand of shoes is less pleasing to the eye and are guaranteed to do nothing for your legs. So what makes Crocs so hot?

Once you have slipped into a pair of Crocs it will become obvious, so say Crocs devotees. For these shoes are said to put the sort of comfort associated with Hush Puppies in the shade. Who would have thought that one could look fashionable and feel comfortable at the same time? It has to be a first.

Apparently Crocs were originally designed for boating enthusiasts in search of footwear that wouldn't mark the pristine white surfaces of their boats or yachts and that would prevent them from slipping on wet surfaces. Made from resin, the shoes are flexible, making them easy to wear, and the large ventilation holes dotted around the shoe allow the foot to breathe, so on a hot day your feet won't sweat or stink to high heaven.

One fan of Crocs admitted to me that she had gone hiking wearing her Crocs.

"You can scale mountains, charge through rivers or walk across slippery rocks in your Crocs," she gushed.

These shoes are not for the fainthearted; they come in the boldest shades of red, orange, green and yellow.

Men tend to be left out of most fashionable trends, not so with the Crocs phenomenon. Crocs aren't just for the fairer sex, they are unisex shoes that go up to a size 12 (XXL) for men.

It all sounds too good to be true, so what's the catch? You have to fork out nearly R400 to acquire a pair of shoes that will probably clash with everything in your wardrobe. However, Crocs aficionados swear that once you put them on, it will feel worth every cent."

Read the entire article, What's Hot written by Mary Corrigall for Sunday Independent (Johannesburg,South Africa) at (http://www.sundayindependent.co.za/index.php?fSectionId=1099&fArticleId=3075249).

"--No. 8: Crocs, Crocs everywhere: When 2004 started, only a couple of hundred retailers carried Crocs, the funky, foam-like footwear made by the Niwot-based Western Brands LLC.

The Crocs craze got a lot crazier in 2005.

The company started the year off by naming a new chief executive officer and incorporating the business as Crocs Inc.

The year was filled with more kinds of shoes, more colors, more gear, more retailers (5,700 domestically), more countries (about 30 worldwide), more employees, more awards, more face-time on billboards and magazines, and ... more competitors.

Similar-looking shoes have sprouted. Payless ShoeSource carries a line made by Airwalk and other stores carry a brand called Nothinz.

But Crocs' biggest news came in August when it filed paperwork for a future $145 million initial public offering.

The company, which halfway through 2005 made $5.9 million on sales of $36.7 million, has not yet disclosed the share price or the date of its possible offering. "

Read the rest of this article, Big '05 headlines include StorageTek, resurgence of venture capital investments by Greg Avery, Matt Branaugh and Alicia Wallace for the Daily Camera at (http://www.tmcnet.com/usubmit/2006/jan/1251619.htm).

Excerpt:
"-- Crocs (CROX ). Light, colorful, rubberlike clogs and sandals are this Niwot (Colo.) company's thing. And it's a fast-growing thing. Sales in this year's first half neared $37 million, up from $13.5 million for all of 2004. The first half also brought $6 million in profit, reversing a $1.6 million 2004 loss. Crocs shoes are hot, so this issue figures to run fast -- until the trend cools."

Read the full article, The IPO Class of 2006 written by Robert Barker (The Barker Portfolio) for Business Week at (http://www.businessweek.com/magazine/content/05_52/b3965028.htm)