(Recasts; adds analyst's comment, details, stock movement)

By Amitha Rajan

BANGALORE, May 7 (Reuters) - Crocs Inc (CROX.O: Quote, Profile, Research), the maker of clunky but popular plastic shoes, posted a first-quarter loss, but investors sent its shares up as much as 15 percent as it backed its second-quarter and 2008 outlook and allayed fears of a further hit from slowing U.S. retail trends.

"I think the fact that things hadn't gotten any worse and that the stock had sold off so much is what is leading to the bounce," analyst Jeff Mintz of Wedbush Morgan Securities told Reuters from Los Angeles. He has a "hold" rating on the stock.

Crocs, which has been battered by slowing business, patent disputes in Europe and consumer concerns over the safety of its signature shoes, shocked investors in April by warning that it may post a quarterly loss. Since then, the company's stock has lost 44 percent of its value.

The company, whose brightly colored plastic shoes, clogs and boots have become a fad in recent years, said inventories at the end of March were $265.5 million and expects the levels to decline by about 15 percent by the end of the second quarter.

Crocs still expects 2008 earnings of $1.54 to $1.64 a share, including pretax charges of 16 cents a share related to the shutdown of its Canadian manufacturing operations. It anticipates revenue growth of 15 percent to 20 percent for the year.

The company foresees second-quarter earnings of 45 cents to 50 cents, excluding charges, on revenue growth of 10 percent to 15 percent.

Shares of the company rose $1.54 to $11.50 in trading after the bell. They closed at $9.96 Wednesday on Nasdaq.