Timberland Co. (NYSE: TBL), manufacturer of outdoor apparel and footwear, reported a 33% drop in revenue back in February, due mainly to a decline in its sales of boots and children's footwear. Seacoastonline.com reported, excluding restructuring costs, the company stated that it earned 52 cents per share in its fourth quarter. That earnings report came in one cent higher than the results expected by analysts polled by Thomson Financial. The company is currently in the process of dual share buy-back plans, initially involving over 12 million shares of it's Class A Common Stock.

While the company has experienced tough times in the marketing of outdoor shoes and boots, the manufacturer reported an increase of approximately 3% in its sales of accessories and apparel, which includes its strong SmartWool socks line. While the company has weathered a drop in domestic same-store sales of more than 9%, Seacoastonline.com reported that sales for the company declined only 5.5% globally in the fourth quarter. Careful watch on the economy might expose this stock as a nice quick pick in the event of a retail turnaround. Timberland is working to revitalize sales by applying additional new focus on footwear aimed at the food service, health care and hospitality industries.

Timberland is currently trading at approximately 50% off its 52-week high of $27.76 per share.

Gary Sattler is a freelance blogger and does not knowingly hold positions in the companies he blogs about.

With this year's summer Olympics just around the corner, athletic outfitter Nike Inc. (NYSE: NKE) unveiled its new Olympic products yesterday.

While Nike has never really embraced the concept of being a sponsor for the Olympics, it prides itself on being an outfitter for the competing athletes. This year there will be thousands of Olympic hopefuls from over a hundred companies that will be sporting the famous "Nike Swoosh" on themselves for millions of watchers to see.

Nike will definitely leave its own footprint all over this summer's Olympic games. For the first time ever, BMX will be an Olympic medal sport, and the new Nike gear for the sport is being heralded by Nike's global director for action sports, John Martin, as the "illest BMX product ever." I honestly thought the word "illest" vanished from the vocabulary around the same time as Run-DMC; guess I was wrong. But I will definitely look forward to seeing the "illest" BMX gear ever, Nike definitely got my attention on that one!

The choppy/consolidating (or perhaps worse) market conditions sometimes give the impression that growth plays do not exist, but that is not the case, and one growth company worth reviewing is Skechers.

Skechers USA Inc. (NYSE: SKX) designs and markets contemporary footwear for men, women and children under seven individual brands, including the Skechers, Michelle K, and Somethin' Else names.

In general, analysts expect adequate same store sales gains in FY 2008 for Skechers' 150 company-owned stores, and via department store distribution. Analysts also expect new product introductions to proceed cautiously, as the footwear sector braces for continued discretionary spending reductions by U.S. consumers, due to the sluggish U.S. economy.

Crocs, Inc. (NASDAQ: CROX), that once high-flying rubberized sandal-shoe maker, has been dogged by rumors that it is 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?

Crocs (NASDAQ: CROX) was one of the best-performing stocks of 2007 until it hit the wall after releasing its September 30th quarterly results. The stock began 2007 at $20.68, ran up to a high of $75 and now sits at $45. The December, March and June quarterly results were spectacular, exceeding both top line and bottom line expectations. The company and analysts raised expectations for forward quarters and the hedge funds that were short the shares thinking the company is just "a fad", got annihilated.

The September quarter results were by all measure excellent as Crocs reported revenues of $256 million, up 130% from the previous year and earnings were up 144% to 66 cents per share. The consensus estimates were for earnings in the 63 cent to 64 cent range and revenue was expected at $253-$258 million. With revenue not "crushing" expectations, the stock was crushed, down from $75 to $32.

In spite of the stock coming down dramatically, many portfolio managers that missed the first run up from $21 to $75 had an excellent opportunity to begin buying the shares. Many have. The stock has rebuilt its value to the $45 level and is still inexpensive versus any traditional valuation methodology. Street expectations for earnings this year is $1.98 and $2.70 for 2008, a solid 35% growth. Revenue will come in this year at $830-$840 million and expectations for 2008 are set for $1.150 billion, again up 35-40%.

Back in August, I wrote about all the beaten-down shoe stocks currently on the market: companies like Rocky Brands (NASDAQ: RCKY), Finish Line (NASDAQ: FINL), Phoenix Footwear Group (AMEX: PXG), and Shoe Pavilion (NASDAQ: SHOE).

Basically, selling shoes without a strong brand name is a tough business. Companies like Phoenix and Rocky are seeing their margins crushed by competitive forces, and retailers like Finish Line, Shoe Pavilion, and Genesco (NYSE: GCO), owner of stores like Journeys, are having a hard time making any money.

Innovation is they key to success in the industry, and there have been a few stories recently about companies looking to do just that. Nike (NYSE: NKE) and Foot Locker (NYSE: FL) have teamed up to launch House of Hoops, which aims to be a "destination" for basketball consumers.

At its Nike stores as well, the leading basketball footwear company is realizing that, to differentiate itself and expand margins, it will have to provide customers with more than just a nice shoe: they need a unique shopping experience.

Discount shoe retailer Payless ShoeSource is now Collective Brands (NYSE: PSS), and recently acquired children's shoemaker Stride-Rite. Perhaps the split focus of trying to be both a discount and a full-price shoe store is what is causing profits to plummet. Collective Brands recently reported 2Q 2007 results. Profits dropped by 23% to just under $25 million, or diluted EPS of $0.38. Total sales were down 1%, not enough to worry, and same store sales were down 1.4%, again not enough to worry, yet. CEO Matthew Rubel blamed the downturn on weak sandal sales. Weak sandal sales in the summer? As good an excuse as any I suppose. But the fact remains the company is selling fewer shoes and making less money on those it does sell. 2Q numbers would have been even worse had the company not received $2.3 million from a lawsuit settled in its favor, and insurance payouts of $1.6 million to cover hurricane damage in 2006.

Collective Brands spent $1.8 million in 2Q 2007 on integration planning for the acquisition of Stride-Rite Shoes, an acquisition management states will have no impact, positive or negative, on earnings in 2008. Why not? What's the hold up that it will take until sometime in 2009 to figure out whether Stride-Rite was a good acquisition? $725 million of the acquisition was financed by a loan. For that kind of money in a company of this size, shareholders have a right to see what kind of bang they may or may not be getting for their investment buck.

To be fair, 2Q reporting period ended in early August, just before the big back-to-school shoe buying period. Inventory expenses was up 5.5% because the stores were stocking up in preparation for back-to-school purchases. Perhaps 3Q numbers will be more positive. Collective Brands bought back $4.6 million of its stock, 141,000 shares, in 2Q as part of a $32 million share repurchase program. This still has not helped the stock, which opened the year trading at $32.89, and now trades right around $23.20.

Shares of Heelys Inc. (NASDAQ: HLYS), makers of those god-awful and potentially dangerous wheeled sneakers, plunged more than 45% this morning after the company warned that its earnings would be nowhere close to what Wall Street analysts had expected.

The company expects profit of 28 cents to 30 cents and revenue of $55 million to $55.8 million. Analysts had expected profit of 38 cents on revenue of $68.4 million, according to Reuters.

I have one thing to say to all of the people who bought this stock when it traded at a ridiculous multiple: hah hah. You should have known better. Fads eventually end. Anyone who thought this stock wouldn't crash and burn was either naive or delusional

The only question I have now is whether Crocs Inc. (NASDAQ: CROX) is next. My colleague Georges Yared is super bullish on this stock. I don't share his enthusiasm. Whenever I see a Crocs display lately, it always looks like it hasn't been touched for a while.

Remember, you investors can be bulls or bears. Pigs get slaughtered especially those wearing sneakers with wheels on them.

I had a notion once to start a guerrilla marketing company, offering to destroy competing brands by dressing the ugliest, most loathsome people I could find in that competing brand's product.

Now, I don't mean to suggest that Dean Cain (Superboy) or G.W. Bush (Superpresidenter guy) fall into that category, but Crocs Inc. (NASDAQ: CROX) has to be a little concerned when the brand shows up on C-list actors and unpopular politicians.

This caused me to jot down a list of Crocs-killers -- people who, by adopting the footwear, could trash the brand. In no particular order --

• Kim Il Jong
• Larry King
• Ziggy
• Mike Tyson
• Osama bin Laden (only in U.S., however)
• Draco Malfoy
• Joan Rivers
• Al Gore
• Tom Barlow (if you knew me, you'd understand.)

There's a reason trendy nightclubs have doormen to weed out us dweebs. Perhaps Crocs should consider the same.

A piece in the Wall Street Journal [subscription required] discusses Nike's (NYSE: NKE) efforts to move in on Puma's business, and offer lower-cut, less flashy footwear, often at a fraction of what some of the company's top-selling basketball sneakers sell for.

Known as "low-profile" for their classic look and more reasonable pricing, sales of these sneakers grew 4.4% in 2006, exceeding sales of basketball shoes. The look first became popular in Europe, and has also caught on among fashion conscious metrosexuals and the skateboard crowd. While Nike's $150-dollar shoes might appeal to hardcore athletes (and posers, mostly posers), the low-profile look is gaining ground and is easier on the wallet.

I don't think Nike will have a lot of success in this market. While Nike is number one for sporting-related footwear, Puma has a "cooler" image among non-basketball fans. The Puma brand has fashion credibility and I don't think that Nike really does.

Nike says it's making progress on selling lower-priced, lower-cut shoes, but I don't think Puma has a lot to worry about in this area of the sneaker-wars. I'm much happier with $30 Puma's I can but at TJ Maxx (NYSE: TJX).

In what looks like an effort to diversify away from its low-price and low-quality (although that has been improving of late) flagship brand, Payless ShoeSource Inc. (NYSE: PPS) is acquiring Stride Rite Corp. (NYSE: SRR), the leading retailer of footwear for children. I have fond memories of going to Stride Rite with my parents when I was younger to pick out new shoes, and a lot of other people have similar memories. Payless will pay $800 million in cash for the company.

The company will change its name to Collective Branding after the deal is consummated because it was the most boring name it could think of that wasn't already taken.

Shares of Stride Rite are up more than 30%, while Payless shares soared more than 10%, making this one of those rare deals that looks good for the acquired company's shareholders and the owners of the acquiring company.

Payless has been a strong performer over the past few years, as CEO Matt Rubell has focused on upping the quality of the company's products. This acquisition seems like a great way to continue on that path, and the company's balance sheet looks strong enough to handle it.

Today, Cramer came on CNBC for the STOP TRADING segment and was briefly positive on Olin Corporation (NYSE: OLN) as a cheap chemical company and positive on Churchill Downs, Inc. (NASDAQ: CHDN) ahead of the Kentucky Derby.

The main issue though is on Crocs, Inc. (NASDAQ: CROX). Cramer is still sticking with Crocs as one that is now not a fad, and he thinks it is going higher.

He did not go as far as a $95.00 target that was given today but he is now saying the ugly shoes are "not a fad." That is markedly different than what he noted in February when he said you could still make money before the fad peaks and it tumbles. He noted somewhat jokingly that Liz Claiborne, Inc. (NYSE: LIZ) ought to go buy that company to re-energize its sagging brand. So that may be a key change in his longer-term views and sounds like he's going to be behind this one for longer than just "a trade" for his future shows and appearances.

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in any of the companies he covers.

During the Red Sox game Saturday, Skechers U.S.A Inc. (NYSE: SKX) ran an ad (several times) that began with a shot of the sneakers of several men sitting at a table. One of the men says something to the effect of, "I love the shoes so I figured why not buy the stock?" Then, the symbol for Skechers appears on the screen.

What is the point of this ad? Warren Buffett, one of the world's greatest executives, talks about the importance of focusing on the operations of a business rather than the stock price. And yet, Skechers appears to be promoting their stock through an advertisement that has almost nothing to do with selling sneakers.

But hey, maybe this is a bullish sign. To advertise their stock that prominently during a a baseball game, the management must have a lot of faith in it, right?

Well no. If you take a look at the recent insider trading, you can see there is perhaps an argument for why management might be focusing now on the stock price:

This post is written as part of AOL Money & Finance's Best & Worst 2006. Vote for Crocs as the up and comer of 2006 or check out the other nominees in the category.

Beauty is in the eye of the beholder. You may not have thought a brightly colored plastic-looking clog thing would be something you'd clamor to buy -- but then that was before everybody on the planet had a pair.

There's probably not a kid under five who can't be seen trotting along in a brightly colored pair of these comfy shoes ... trailed closely by a mom or dad shod in their own.

Crocs, Inc. (NASDAQ: CROX) went from $1 million in revenue in 2003 to a projected $322 million this year. Its February IPO gave the footwear maker a market cap of $1 billion.

But it took more than a parenting trend to put Crocs on the big boy map. What started out as a lark by three middle-aged business guys turned almost overnight into another American success story thanks to a savvy business strategy. A little celebrity favor didn't hurt, either.

In 2003 the company was doing $1 million in business -- not bad considering sales were largely driven through word of mouth. Then the founders hired an old college chum -- retired Flextronics executive Ron Snyder -- to help them grow to the next level. In 2004 Snyder bought the Canadian business that manufactured Crocs and owned the rights to the resin that gave the shoes their particular comfort and odor resistance -- called Croslite. Now the company owned the means of production ... and suddenly it was a whole different ball game.

Quantitative analyst and editor of OTC Insight, Jim Collins sees opportunity in Steve Madden (NASDAQ: SHOO), a shoe designer whose products are distributed through department and specialty stores, its 95 retail shops and its e-commerce site.

Fundamentally, Collins is attracted to a recent new product launch known as the "Design your Own" collection, which lets buyers choose between the size of the heels and the patterns, materials, finishings and colors to customize their own shoes. Collins points out that there are a total of 4,221 possible combinations.

Technically, Collins looks to the stock's very high relative strength ranking of 98 out of 100 as well as its solid score of 'B' for accumulation-distribution. He does caution that the company is exposed to fashion risk, which he notes can be difficult to predict. Despite these risks, he has selected the issue as his latest featured investment.

Validea has an unusual approach to stock selection; editor John Reese assesses companies based on the strategies employed by "legendary investors." In the case of his latest buy, Finish Line (NASDAQ: FINL), the stock was chosen based on the value methodology used by Benjamin Graham (Warren Buffett's mentor) and Peter Lynch.