No! This post is not about my Crocs Investment Thesis. The company published a 114 pages Presentation on September 30 containing almost everything you need to know about Crocs ($CROX). Like the classic clog, some people will like $CROX as an investment, others will hate it, and most will remain neutral. I included the presentation at the bottom of this post.
This post is about the inconsistencies I uncovered after I attended the Crocs Investor Day. On September 30, $CROX guided revenues lower by $10MM for Q3 due to the impact of $4MM in foreign exchange (FX) erosion and $6MM of shipment holds in China.
On that day, the company announced that it bought back $30MM of stock in Q3 compared to $23MM in Q2. Isn't this a bit aggressive considering management had visibility into a reduced performance throughout the quarter? The FX and China issues didn't arise the morning of the Investor Day.
On August 5th, Greg Ribatt, Crocs' CEO, bought $150,000 of stock, increasing his position to 701,087 shares and on August 24th, Andrew Reese, President and COO, purchased $44,000 of stock, increasing his position to 504,523 shares. Ribatt and Reese have been aggressive buyers of stock throughout the year.
The purchase activities during this coming q4 are worth monitoring. Unfortunately, investors will have visibility into repurchase activities only well into 2016. Management might decide not to buy stock for their own accounts in Q4, in order to remain in stealth mode and let the company take advantage of much lower stock prices following the reduced guidance. This is worth monitoring.
Of Interest: Crocs Investor Day - Spring Summer 2016