Crocs, manufacturers of extraordinarily ugly popular shoes, released spectacular fourth-quarter earnings yesterday afternoon, with both revenue and earnings almost doubling their levels from a year previously. Obviously no one’s particularly worried about the escalator problem.
The stock, however, is down 13% today. Colin Barr thinks it’s because demand was so strong that the company had to ship some shoes by air freight; Kathy Shwiff thinks it’s because the 2008 earnings forecast fell short of expectations; and David Phillips thinks it’s because inventories rose a lot. Me, I just think that what goes up must come down.