Crocs Inc' - PowerPoint PPT Presentation

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Crocs Inc'

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The unique resin material, croslite, in all of their products. ... Wolverine World Wide. Timberland. Iconix Brand. P/E 2006. 23.7. 30.3. 23.1. 20.3. 16.6. 31.1 ... – PowerPoint PPT presentation

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Title: Crocs Inc'


1
Crocs Inc.
  • Group 2
  • Jeremy Kliewer, Joe Masloski,
  • Tanner Scott

2
CROX Overview
  • Crocs Inc. makes footwear for men, women, and
    children.
  • The unique resin material, croslite, in all of
    their products.
  • This material creates a soft, lightweight,
    non-marking, slip- and odor-resistant shoe.
  • These properties make the shoes ideal for casual
    wear, as well as boating, hiking, fishing, and
    gardening.

3
Recent Headlines
  • Crocs Inc. signs with top teams in NASCAR a new
    driver of earnings
  • Acquisition of new companies Jibbitz, Fury, and
    Ocean Minded
  • Dicks along with other retailers are allocating
    more square footage for Crocs
  • 4Q earnings up 236 year over year, 112 million

4
(No Transcript)
5
International
  • Increased doors by 3,000 in the past two months
  • 5,900 doors in Europe currently
  • Due to international sales Crocs tax rate is
    effectively 32.5
  • In 2006 Savings 7.25 Million

6
Distribution of Sales
7
EPS Relative Valuation
8
P/E Relative Valuation
9
DCF Valuation
  • Assumptions
  • Gross Margins 57
  • Operating Margins 27
  • Tax Rate 32.5

10
Risks
  • Seasonality
  • Decline in popularity
  • Competition
  • Operational Risk
  • F/X Risk

11
Recommendation
  • Covered Put strategy
  • Sell 5 55.00 June 2007 Puts
  • Buy 500 Shares
  • Costs 25,595 and would be roughly 2 of the
    portfolio

12
Options
  • Split between Put contracts is 3.50
  • Earn of 1,750 off premium, to aid in covering
    the share purchase

13
(No Transcript)
14
Q1-2007 Earnings Release
  • Today Crocs Inc. had their first quarter of 2007
    conference call
  • Key Points Made

15
?Questions?
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