Colors are amazing and can play a vital role in attracting customers. This is what has been applied by the footwear giant Crocs, Inc. (NASDAQ:CROX) to make an impression on customers’ minds. Bright and attractive colors helped Crocs lure large number of customers, leading to higher profits.
In fact, Crocs, Inc. (NASDAQ:CROX)’ variety of good quality of products led to stellar fourth-quarter results. Though the numbers met analysts’ expectations, a dull outlook led to a fall in the stock price. Let us understand further.
Increased selling prices, as well as higher volumes, led to a 10% jump in revenue to $225 million. In spite of a dull holiday season and overall economic weakness, Crocs, Inc. (NASDAQ:CROX) witnessed growth in all segments and geographic regions.
Its expansionary moves into new markets, and addition of 38 new stores during the quarter helped it witness growth in the European market. Crocs, Inc. (NASDAQ:CROX) has been focusing on Europe and this has started paying off. Even the American region performed well, mainly due to growth in the wholesale segment. Hence, the company intends to concentrate on its wholesale business growth in the future. However, Asia has also been one of the great performers with a 20% growth in revenue during the year.
Crocs, Inc. (NASDAQ:CROX)’ efforts are endless. In the retail space innovation is very important, and the company has utilized its creativity well with new product launches. Its all new Retro Clog collection attracted a lot of customers, comprising 37% of the total units sold.
However, Crocs, Inc. (NASDAQ:CROX) is not the only retailer which has been emphasizing on product innovation in order to attain growth. Even peers such as NIKE, Inc. (NYSE:NKE) and Wolverine World Wide, Inc. (NYSE:WWW) have followed a similar path. Nike’s new technology shoes, such as Flyknit and NIKE, Inc. (NYSE:NKE) Free, did lure customers to its stores. Nike has always been active in bringing new products to the market. NIKE, Inc. (NYSE:NKE)’s products, such as Nike+, have been so successful that customers are showing interest in spite of price hikes.
However, Wolverine World Wide, Inc. (NYSE:WWW) has been following some other strategies too, besides innovation. Its acquisition strategy has placed it in a better position than other players. Investors have been looking forward to the buyout of Collective Brands’ Performance and Lifestyle business since last year. The resultant addition of four brands is expected to help Wolverine World Wide, Inc. (NYSE:WWW) fight the unfavorable effects of a weak European segment.