As you probably know, the company makes sneakers with removable wheels -- shoes that can double as roller skates. You stop by leaning your foot back. These were very popular about a year ago, but I haven't seen many kids at all using them lately. It probably hasn't helped that many stores and schools have banned kids from wearing Heelys on their premises.
This company clearly needs to expand its product line. The latest figures aren't available, but as of March 31, 98% of its sales was from the core roller-shoe product. Now that the fad seems to have diminished, the company has no other products -- to speak of -- that it can sell. The situation reminds me of Coleco, when it produced the Cabbage Patch collection. The success of that one product wasn't enough, and when the fad diminished, it filed for bankruptcy protection.
*Info courtesy from The Motley Fool*** Pic courtesy of http://www.heelys.com/
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