Doing a couple of errands today, I saw kids wearing Heelys at the car wash and the mall. The kid at the car wash tagging along with his dad seemed to have a Latino father and a white mother. I asked the kid if he liked the shows, if he was planning to get more, if his friends had them, etc. Kid's answer: yes, yes, and yes. He looked to be about 10 years old which made me think that he's going to have to buy some new Heelys soon when his feet grow anyway.
At the mall, it was a black girl, perhaps 11 or 12, gliding by. She was moving too fast for a long conversation, but she nodded when I asked her if she liked her shoes and planned to get another pair at some point.
Just thought I'd pass that anecdotal experience along.
Even if the quarterly earnings (still a YoY increase) didn't meet the company's predictions, that doesn't mean that sales of Heelys are going to drop off a cliff. Do you think the ten-year-old who loves his Heelys will care about the company's earnings projections when he starts to grow out of his shoes? Of course not; he's going to want another pair regardless.
That's not to say that Heelys sales may grow at a slower rate than previous company estimates -- who knows. But is Heelys fairly valued with a forward P/E of 7, when the lowest earnings estimate for '08 is $1.07? I don't think so.
As I mentioned in my thread before, as a mom of a 9 year old boy, these are GREAT shoes (toys). I say great capitalized because not only do the kids loved them, it's great as a parent to see the money you spend on your kids get appreciated by them - so it's no question in our minds to buy another pair and another pair as they get older. In the year and a half my son has had his shoes, we have never ONCE heard a kid or a parent say anything negative about these shoes. I mean seriously, if you were ten wouldn't you want to tool around the mall with a pair of these? Sure transforms all those errands your mom drags you along on into something fun. I just wish the Heelys marketing dept. would touch on the factors we users bring up instead of just the "california skateboarder" theme spots - I mean fine show those spots to the kids but have a spot for the parents that make them realize this is as good an investment for your kid fun as legos or a bike.
Question: If heelys sales are that bad - how does anyone explain 2Q07 bal sheet - showing on 12/31/06 inventory is $6.1 mill; then on 6/30/07 its $22.7 mill - who w/b ordering $22.7 mill of inventory if the stuff wasn't selling - hlys only acts as a pass-thru - they don't sell the stuff themselves - heelys takes orders & fills the orders