Someone had to pay for the extremely disappointing downturn in the stock of Heelys Inc. (NASDAQ: HLYS), the children's shoe company that builds wheels into its footwear. The company's CEO was pushed out on Friday.
The stock has fallen from a 52-week high of $40.09. The shares now change hands just above $6.
After a huge run in revenue that moved from $21 million in 2004 to $188 million in 2006, more recently sales have fallen off to $50 million after hitting $75 million in the June quarter.
Like other specialty shoe companies, including Crocs Inc. (NASDAQ: CROX), Heelys has not been able to follow its first big hit with other items.
Changing CEOs is not going to alter that.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
2-02-2008 @ 4:32PM
...Jan... said...
- Serves them right for buying out Soap shoes back in 2003(?) yet not making any of them! Well, I guess this is what happens when they only make 1 fad but not followed by another.
- I'm going to buy some of their stocks in hope that they get smart and release the Soap shoes again to regain profit.
2-04-2008 @ 10:10PM
Sheffield said...
(Like other specialty shoe companies, including Crocs Inc. (NASDAQ: CROX), Heelys has not been able to follow its first big hit with other items.)
This claim is bogus. CROX has several lines that are selling quit well. The Mammoth, recently touted by CEO Snyder in an investor presentation, has exceeded expectations. Also CROX has begun to diversify their offerings.
This comparison of CROX to Heeley is the story being touted by those who are short CROX. It would be better when such comparison are made to support such comparison with reasonable FACTS.
4-14-2008 @ 4:09PM
John Adams said...
Sheffield, Looks like the claim wasn't bogus, Crocs has yet to surge with all their new and great products. I bet you wish you sold all your Crox back in the beginning of February....
All that talk about how the Mammoth was going to save the company didn't really pan out, still has had quite the fall and doesn't seem to be recovering.