Crocs (CROX), the maker of the fashionably dubious clog of the same name, is down almost 50% in the pre-market after the company slashed their Q2 revenue and profit forecasts.
These are tough times for CROX. Retailers are cutting back on orders, Wal-Mart sells knock-offs for $5 (Crocs retail for between $24.95 and $69.95 each), hygiene concerns dog the footwear, and the fad may have simply passed.
This won’t help either: Crocs To Warn Wearers Of Escalator Danger.
So, of course, anyone on Wall St. who hasn’t jumped ship on this sub-$5 stock (52-week high of $75.21) is likely to do so now, like Baird.
Baird downgrades Crocs (CROX) from Outperform to NEUTRAL, target $5.