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Crocs swings into loss

Crocs, the brand best known for its brightly coloured clogs, made a loss of $4.5 million (£2.2m) in the first quarter of this year, down from net profits of $24.9m (£12.7m), for the same period the previous year.

The brand said that revenues increased by 39.8% to $198.5 m (£101.3m) for the quarter ended March 31 2008, compared to $142.0m (£72.4m) for the same period of the previous year.

However Crocs has been hit by slow footfall and colder temperatures in its domestic US market.

Crocs warned investors last month that it may post a quarterly loss and president and chief executive officer Ron Snyder said in a statement that he was disappointed by the brand's start to the new year.

He said: "As we previously announced, our first quarter domestic sales came in below our original projections due to a combination of factors, including slower traffic at many of our retail partners and colder than normal temperatures that delayed the start to the spring selling season.

Overseas, we experienced significant sales increases in Europe and Asia which were up 109.2% and 92.5% from the first quarter of last year, respectively. However this was not enough to offset the shortfall in our U.S. business.

While we are disappointed with our start to the new year, we remain confident about the strength of our brand, optimistic about our future prospects, and committed to executing our long-term strategic plan."

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