"Shares of Crocs are rated Neutral with a $13 price target by Goldman on its view that a lot of work still has to be done to bring off any LBO." (19NOV2013, Market Current).
You are correct that the same firm has indicated a "potential" LBO around $1.5 billion. Goldman has estimated that apx. $860 million in debt would need to be issued to pull an LBO off. Perhaps in this age of funny money, "someone" would be unwise enough to loan that kind of money for a $1.5 billion LBO of Crocs, but it is telling that Goldman maintains its $13 price target. In my humble opinion, Crocs isn't even worth that much based current facts.
A few times each week, I am receiving email marketing from Crocs advertising promotional prices on various Crocs shoes. Bothers me in 2 ways. 1) If Crocs is this promotional, what does that tell us about its brand equity and product line-up? 2)Too many emails signifies a marketing department that is pushing the envelope on consumers' willingness to pay attention the bombardment of emails or even to remain on the email list.
"Complicated and huge We are going to Europe for Christmas and thought these boots would be perfect for all weather situations. Both my husband and I ordered pairs and were so excited when they arrived. However, they run so large that they fell off our feet and it takes a "rocket scientist" to convert from shoe to boot. The idea is great, but it needs to be improved. BTW, we wear nothing but Crocs and these are the first ones we have had to return." --customer review on the Crocs website.
...more inconsistency. In some cases, the shoes run small! So sometimes they run big and sometimes they run small. No wonder orders from the website are down. Who wants to order shoes online when you never know how the sizes will run. Read through some of the reviews/complaints on the site. I've mentioned the Bistros running too large. Have a look at the Croc Band 11.5--complaints they are running too small. Could someone send a textbook on supply chain management to HQ?
Perhaps some of the significance is that Erinn Murphy was one of the last of the Mohicans who had a favorable view of Crox. Now, she, too, has turned negative on the company.
I got the cash for the shares this morning. There was a $38 reorganization fee for each of my accounts. Still waiting on the special dividend.
Thank you. I looked at that size chart--still off. Moreover, some of their clogs models have normal sizing while others do not, although they don't distinguish the disparity for ordering purposes--making for a frustrating and inefficient customer experience. Why would the size 11 on the Classic clog be a relatively normal size 11 and yet the size 11 on the Work Bistro be totally off and enormous? I think something went wrong in the manufacturing/labeling process--very inconsistent. At any rate, prices on the Work Bistro have been slashed. Not enough giants, I suppose.
I ordered some Work Bistro clogs from the site in my usual size. When they arrived, they were MASSIVE. Not really just a roomy fit. More like totally wrong on the sizing. I exchanged them for some classic clogs that have regular sizing. I think Crocs will need to slash prices on their oversized shoes and dump them to clear the inventory.