I can talk about it now.

I'm far enough removed from my mistake of an investment in Crocs (NASDAQ:CROX) that I can admit to drinking the brightly colored punch. I didn't buy anywhere close to the top, and I sold before the stock hit bottom, but the end result still wasn't pretty.

Last night's sorry earnings report only hammers home what I thankfully realized several quarters ago: Those bright Crocs colors keep fading.

Revenue fell by 32% to $134.9 million in the first quarter. Losses widened to $0.27 a share, or $0.23 a share if you back out a hit from foreign currency exchange rates. The upside is that analysts were braced for a loss of $0.27 a share on just $114.4 million in revenue. The company is also making inroads into tackling its bloated inventory levels and accounts receivable -- areas that helped fellow Fool Alyce Lomax rightfully flag this stock as dangerous.

So how are the prospects for the company behind the bright and light shoes that are made of a proprietary odor-shaking resin called croslite? Well, the company's not looking too good unless you see the potential in the Web-tethered Asian market. Asia is the only region that hasn't tired of the company's shoes. Sales there were up 7%, whereas they fell by 37% and 49% in the Americas and Europe, respectively.

My excitement for Crocs was triggered when the company expanded into apparel two years ago. I was betting that the company would become the next crossover hit, the way Nike (NYSE:NKE) went from footwear to athletic apparel or Callaway Golf (NYSE:ELY) went from oversized golf drivers to sporty apparel. These days, performance-apparel specialist Under Armour (NYSE:UA) is doing a nice job making a dent in the footwear market. Crocs? Not so much.

Unfortunately, Crocs has proved to be more of a one-hit footwear wonder, like Heelys (NASDAQ:HLYS). Until sales pick up, there's little reason to bank on the company's long-term prospects. Speculators will argue otherwise. The stock has been a four-bagger since bottoming out in November. Then again, a lot of stocks have bounced back sharply off their November lows.

Crocs is going to have to earn its gains from here. Unless Asia takes to Crocs like France took to Jerry Lewis, I'm not going anywhere near that brightly colored punchbowl again.

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Longtime Fool contributor Rick Munarriz will still wear his two pairs of Crocs proudly, even if the investment left him poorer. He no longer owns shares in any of the stocks in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.