Does anyone know why CROX's cost structure has ballooned over the last year?
It seems like that's what's killing their profits.
Answers
731 points
thinker70 answered 11 months ago …
Just a guess on my part but LOGIC would dictate that the high oil prices this past year would have seen a rapid escalation in raw material costs unless they had HEDGED them in advance.
If you really want the information you could look at their latest financial filings and/or simply ask the question of their shareholder relaltions Dept.
2222 points
readytoretire answered 11 months ago …
It seems that they had big growth in their plans, so they ended 2007 with massive inventory and physical plant assets, mainly with financing. Now factor in a growth rate of minus 30% for the year, and you get an appreciation for their problems. They have shut the Brazil plant and doing other things to stop the bleeding. Throw in a fair amount of shorting of the stock, and there you are, minus 96% for the year.
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