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A good quarter from CROX

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Here is the results (details from business wire). I will add more after listening to its conference call.

— Second Quarter Revenues Increased 162% to $224.3 Million vs. $85.6 Million Last Year (analyst expected 188.49 to 204.20)

– Company Reports 2Q07 Diluted EPS of $0.58 vs. $0.19 Last Year- (analyst est. 0.40 to 0.48)

— Company Issues 3Q07 Guidance of Revenues between $240 and $250 Million and Diluted EPS of $0.58 to $0.62 –

— Company Raises FY07 Guidance to Revenues of $810 to $820 Million and Diluted EPS of $1.89 to $1.93 –

Conference call:
There is some technical problem getting on the web conference, but I did listen to most part of it. Couple interesting points:
1) Crocs employs 5,000 people worldwide, less than 10% are located in Corolado HQ.

2) License revenue: it’s not significant with the exception of Disney. With new school (college) season, and new sports season (football) approaching, I think it will grow in the US.

3) International: the profit margin is actually higher than the US. Is that because Crocs are cheaper in the US? Note the tax rate overseas is usually lower than the US.

It appears Crocs is becoming a International brand. It’s interesting to see it started from mid-west, then spread to california and east coast. The fashion usually goes the other way.

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