Crocs to launch clothing line this fall

NEW YORK -- Crocs Inc. said Monday it will launch a line of clothing using a form of the resin material it uses in its brightly colored clogs.

The clothing line for men and children, which will hit stores in October, is an attempt at diversification for the company as it tries to evolve from a niche shoe maker to a lifestyle brand.

The clothing will use the company's proprietary material and will be resistant to harsh chemicals and heat, the company said, adding that it plans to launch another line of clothing for spring 2008.

Crocs shares rose 99 cents, or 1.7 percent, to $59.98 at 4 p.m. in composite trading on the Nasdaq Stock Market, the highest since Aug. 2. The stock has increased more than fivefold since the company went public in February 2006.

Crocs' sales more than doubled to $224.3 million in the second quarter, and the company increased its full-year profit forecast on higher orders than it expected and sales in Europe.