CROX News — Secondary Offering & Raising Guidance

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Crocs, Inc. (NASDAQ: CROX):
From the Company’s press release:

Based on strong demand from consumers, which has resulted in faster than anticipated re-orders from our customers both in the U.S. and overseas, the Company now expects sales for the second quarter of fiscal 2006 to be between $62 million and $65 million compared to its previous guidance of $53 million to $55 million. The Company also stated that it now anticipates net income per diluted common share to range from $0.23 to $0.25, versus its previous expectation of net income per diluted common share of $0.21 to $0.22.

Translation:


Things are growing so fast that in a matter of less than a month the company needs to raise guidance by 18%. I expect it will raise guidance at least once again before reporting its actual sales and earnings after the quarter closes. Even then, it will probably beat estimates.

Secondary Offering:
CROX just filed for a 6,500,000-share secondary offering (7,475,000 with over-allotments) to facilitate some of the Company’s larger shareholders from diversifying. Proposed price = $27.38, but stock already at $28.90 in after-hours trading. No problem with that as far as I’m concerned. In fact, buying shares in that offering would probably be a profitable thing to do. S-1 Filing here.

Cheers!

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CROCS INFO:
Index of CROX postings
Crocs on Amazon.com

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