Jibbitz

Maybe Crocs investors shouldn't focus too much on the popularity of Crocs line of footwear and instead focus on the phenom that is Jibbitz. In what appears to be sweeping the nation with popularity amongst adults and children alike, Jibbitz is becoming a buzz word.

Crocs bought out Jibbitz on December 5, 2006 for $10 million with option to pay $10 million more if certain earnings targets are met. I don't think the founder of Jibbitz LLC will have a problem collecting on that additional $10 million!

Jibbitz is addictive. It allows for personalization and customization of Crocs and is one of the strong selling points for Crox. Never mind that Crox comes in varieties of "fun" colors that can be mixed to suit, the Jibitz allows for customization and creates a fan base for millions of school aged children and adults alike. In fact, many children in Phoenix sampled in Nordstrom's by myself recently states that (and I am compiling as a general consensus), everyone in school has one (Crox and Jibitz) and it appears that it has taken on their own element of trading and trendiness. Case in point, popularity now asserts in many of the Phoenix area children based on the number and uniqueness of Jibbitz! Unbelievable!

Can this be the start of the new craze such as the Pokemon, Uh-gi-Oh, and baseball trading cards? It certainly appears that way. If this phenomenon is true and continues, then we can count on Jibbitz which has huge profit margin and are relatively inexpensive to manufacture will add significant profit margin to already stunning results by Crox! During the recent quarterly earnings call, Mr. Schneider, CEO declined to give projections or include Jibbitz contribution to profits until next quarter, probably because the founder of Jibbitz was paid the $10 milllion bonus for Crocs hitting their target.

It continues to get interesting for Crocs in what appears to be the best stock for 2007!