Surprise Hits: Recession takes a bite out of Crocs

What's adored by corpulento Italian chefs, despised by snarky fashionistas, and made of the same stuff that gives plastic wrap its maddening cling? That the answer is obvious is a testament to the surprising success enjoyed by Crocs Inc.'s (CROX) signature foam-rubber clogs.

The squishy shoes' rise to ubiquity helped Crocs boost sales from $109 million in 2005 to $847 million in 2007, when shoppers snapped up 46.9 million pairs. But both the company's fortunes and the shoes' popularity have slipped, leaving analysts, investors, and fans wondering if Crocs can pull off another surprise and thrive again.