$148M Loss Bites Into Crocs

Demand for colorful clogs tanks
By Peter Fearon,  Newser Staff
Posted Nov 13, 2008 3:02 AM CST
Crocs has posted $148 million in losses, and analysts are making grim short term forecasts amid falling demand.   (AP Photo/Ed Andrieski, file)
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(Newser) – Crocs, the maker of hugely popular colorful plastic clogs, suffered a $148 million third quarter loss on a 32% drop in demand in Europe and the US. The Colorado-based company has shuttered a factory in Canada, will close another in Brazil next month, and has amassed extensive unsold inventory, reports the Rocky Mountain News.

“We’re dealing with one of the most challenging global economic and retail environments in some time,” said Crocs' CEO in a conference call with analysts. Microsoft founder Bill Gates bought Croc shares earlier this month and now has a 5.6% stake in the company, currently worth about $9 million.