Filed under: Costco Wholesale (COST), Crocs Inc (CROX)

Crocs, Inc. (NASDAQ: CROX), that once high-flying rubberized sandal-shoe maker, has been dogged by rumors that its selling products to discount retail giant Costco Wholesale Corporation (NASDAQ: COST).

Looking to set the record straight, Crocs issued a press release:

We have not sold Crocs-branded products to Costco nor have we authorized any of our customers to sell our products to Costco; however, we have discovered instances where we believe our products were being sold indirectly to Costco and we promptly terminated those relationships upon learning of that behavior. We are continuing to take aggressive measures to prevent this from happening.

Well that settles it, right? End of story? Hardly. Think about it: Crocs’ retailers aren’t selling stuff to Costco on the cheap because it’s been flying off the shelves. If they could sell it at retail prices, you have to think they’d do that.

So Crocs isn’t selling stuff to Costco: but the presence of its products in those stores is indicative of a glut of product at the retail level. And that’s hardly bullish. Why would those retailers reorder when they can’t sell what they got without Costco?

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This entry was posted on Friday, March 7th, 2008 at 12:59 am and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.