Latest financial news - CNNMoney.com - Jul 17, 2009Eddie Bauer Holdings, Inc. (EBHIQ)
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Jeff Mintz
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Wedbush Morgan"I love crocs for kids," said mother of two Anne Mclane, "my 4 year old pretty much won't take them off all summer." "I know some adults who wear them but they are not my taste." Even though they remain relatively popular, the Croslite clogs may be destined to suffer the same fate as another once hot apparel maker,
Eddie Bauer, which filed for Chapter 11 due to the many challenges it faced in this recession. Making matters worse, the $30 chunky shoes are designed to be comfortable and, more importantly, durable, meaning that even the most loyal fans may not need to buy replacements for their trusty Crocs anytime soon and as the brand loses its luster, new devotees may be harder to come by. Some analysts believe that while the company maintains a viable business model, it could years for Crocs to become profitable again.
"The company can remake its business and offer both meaningful profitability and stock gains," Jeff Mintz, an analyst with Wedbush Morgan Securities said in a recent report.
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"I love crocs for kids," said mother of two Anne Mclane, "my 4 year old pretty much won't take them off all summer." "I know some adults who wear them but they are not my taste." Even though they remain relatively popular, the Croslite clogs may be destined to suffer the same fate as another once hot apparel maker, <span class="company">Eddie Bauer</span>, which filed for Chapter 11 due to the many challenges it faced in this recession. Making matters worse, the $30 chunky shoes are designed to be comfortable and, more importantly, durable, meaning that even the most loyal fans may not need to buy replacements for their trusty Crocs anytime soon and as the brand loses its luster, new devotees may be harder to come by. Some analysts believe that while the company maintains a viable business model, it could years for Crocs to become profitable again. <span class="sent"> "The company can remake its business and offer both meaningful profitability and stock gains," <span class="analyst">Jeff Mintz</span>, an analyst with Wedbush Morgan Securities said in a recent report. </span>..."I love crocs for kids," said mother of two Anne Mclane, "my 4 year old pretty much won't take them off all summer." "I know some adults who wear them but they are not my taste." Even though they remain relatively popular, the Croslite clogs may be destined to suffer the same fate as another once hot apparel maker, <span class="company">Eddie Bauer</span>, which filed for Chapter 11 due to the many challenges it faced in this recession.
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