Crocs shares rise on strong 2Q earnings

NEW YORK

Shares of Crocs Inc. rose on Friday, a day after the maker of colorful plastic shoes said it returned to a profit in the second quarter on better demand for new product offerings.

THE SPARK: The company, based in Niwot, Colo., said results were spurred by better global wholesale and consumer direct businesses and offered third quarter guidance above expectations.

THE BIG PICTURE: Crocs quickly soared in popularity after they debuted in 2002, but later in the decade the company faced a falloff in demand as the trend faded. In the spring, Crocs staged a reinvention of itself with 20 new styles and a marketing push that focused on comfort.

THE ANALYSIS: Stifel Nicolaus analyst Jim Duffy said results show evidence of traction from new products and better momentum in the Americas.

"Improving fundamentals and execution in 2010 will set the stage for compelling earnings power into 2011," he wrote in a note to investors.

SHARE ACTION: Shares rose 92 cents, or 7.3 percent, to $13.50 in afternoon trading, after earlier reaching a 52-week high of $14. The stock had traded between $3.95 and $13.20 over the past year.