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Eating the Young: Will media scare hurt sales of popular Crocs?

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If there's a kid close enough to trip over, chances are he or she's shod in a colorful pair of rubber clogs. The shoes, made by Crocs, Inc. (NASDAQ: CROX) are ubiquitous on the under-5 set (and their parents), favored for their bright colors and the relative ease with which tots can get them on and off by themselves.

But according to an ABC News report, Crocs pose a risk to kids riding on escalators. Seems the rubbery toe of the shoe can easily get caught, which could injure a little foot.

Sounds like a small concern, but remember, this is a country where a company will recall millions of product units over the threat of it being a choking hazard. Remember how hoodies used to have drawstrings? No longer.

Could this be the opening salvo for Crocs' demise? All it would take is a recall for parents and their progeny to find another colorful footwear favorite. Fashion is a fickle mistress. And it's notorious for taking companies making "hot" products to the heights (Adidas?) then letting them plummet to the depths when public tastes moves on. Nike Inc. (NYSE: NKE) was one company that managed to brand itself well and expand its product base widely enough to survive the winds of fashion. But is CROX Nike?

Who knows? The stock hasn't been hurt by the story. In fact, Shares of CROX advanced 9.55% last week, making the footwear retailer one of the top-performing Zacks #1 Rank companies. Earnings estimates for this year increased 15% over the past two months to $2.39 from $2.07.

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Last updated: November 27, 2009: 04:46 PM

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