Samurai_stockholder

Crocs: Bloated Inventory Caused Stock Slide

If you've ever been a brand manager for a large company, you'd know that it is impossible to forecast a mega-hit product.

CROX has over 250 SKUs. If they were to build pre-launch inventory under the assumption that every new product would be a mega-hit, then they actually would have an inventory problem.

In actuality, their inventory as a percentage of forecast sales is well within industry standards of around 16%.

You and the analysts are simply wrong on this one.

The reason CROX is down has nothing to do with growing inventory to meet phenomenal sales growth (+139% YOY) it is solely due to its 30% of float being short.

Why didn't you mention that little fact?

This will soon change when the hedge funds cover their short positions--probably the first week of March.

After the short squeeze, see how concerned the market seems to be about an "inventory problem"....