If you take a look at the metrics for CROCS Inc. (CROX-NASDAQ), they speak for themselves.  Shares are up 14% to $65.50 in after-hours trading, which will be more than 10% above the all-time highs.  To top off what were nothing short of blowout earnings, the company declared a TWO-for-ONE stock split.  Adding fuel to the fire is the 9.1 million shares in the short interest from April, which is more than one-third of its share float.

These results are amazing when you look at them:

Q107 Revenues Increased 217% to $142.0 Million (estimates were $114 million);
1Q07 Diluted EPS of $0.61 (estimates were $0.49)

Q207 Guidance of Revenues between $180 and $190 Million (estimates are $136 million) and Diluted EPS of $0.80 to $0.85 (estimates are $0.63); Raises FY07 Guidance to Revenues of $670 to $680 Million (estimates are $541 million) and Diluted EPS of $2.90 to $2.95 (estimates are $2.43).

This is just an amazing fad, and it proves that America is truly addicted to ugly fashion.  Don’t let the appearance get in the way of a growth trend.  The company has signed university and sports pacts that keep driving sales and it hasn’t even mattered that their intellectual property right issues are not entirely behind it.  At the end of the day these are rubber and foam versions of what the Dutch dock workers wore to keep their feet from getting crushed, so the intellectual property outside of the little gator face is one that anyone with cash could challenge if they wanted to.

Jon C. Ogg
May 3, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.

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