Crocs, Skins in different worlds

It probably has much to do with the current three-day World Shoe Association trade show in Las Vegas, but the Crocs-Skins comparisons are neverending.

While Crocs has unmatched distribution systems and uses low-cost kiosks to make its product available on a massive scale, Skins has neither. That's why, when a story on Seeking Alpha spoke glowingly of Skins in terms of having a Crocs-type market potential, I had to disagree. I can see Skins as a potential buyout target of Crocs down the road, but not as a true peer in footwear.

The beauty of Crocs' primary best-seller, Caymans, is that they appeal to all ages, male and female. That won't be the case with the Skins shoe, which is contemporary, but not widely appealing. You won't find many 5-year-olds wearing them once they're out, supposedly in late August.

I like Skins' marketing program and early sales. But the shoe will cater to a niche market, completely opposite what Crocs has and will continue to do. Styles aside, Skins will sell for $150-$300, which is up to 10 times what a pair of Crocs Caymans costs.

Skins is one of the buzzwords at the trade show, and shares traded up a penny to $2.06 yesterday. Pre-market shows SKNN.OB with a bid price of $2.08.

CROX is trading at $57.88 in pre-market.

Pupule Paul is long CROX, no position in SKNN.OB.