Crocs shoes. Some people love them. Many people abhor them. Regardless, they have been a fashion statement of some sort or another since they burst onto the radar as boating shoes in 2002. Now, it seems there might be a downward trend in their favor as the shoemaker gets set to close the last of their manufacturing facilities.
According to CBC News, Crocs Inc. will close all of its remaining manufacturing facilities. The facility in Mexico has already been closed, and the remaining one in Italy is set to be closed at some point in the future according to a statement in the official press release.
“In connection with ongoing efforts to simplify the business and improve profitability, during the second quarter, the Company closed its manufacturing facility in Mexico and moved ahead with plans to close its last manufacturing facility, which is located in Italy.”
It is unclear, yet, where crocs will now be manufactured and what this means for Crocs Inc. financially. Although, the press release does offer some glowing news about the company and it doesn’t yet appear to be struggling even though they have also closed 28 retail outlets, leaving them with less than 400 outlets globally now.
The press release also states that while manufacturing facilities are now closed, Crocs Inc. “revenues were $328.0 million, growing 4.7% over the second quarter of 2017, or 2.3% on a constant currency basis.” However, they did note that there was a “loss of approximately $22 million due to operating fewer stores and business model changes.”
The company has also announced that their chief financial officer will resign. Carrie Teffner, who is also the executive vice president, will leave Crocs Inc., effective April 1, 2019. CBS News states that her successor will be Anne Mehlman. She will officially start on August 24, 2018. Mehlman was previously with Amazon-owned online shoe retailer, Zappos.
While there appears to be a shakeup going on within Crocs Inc., according to the company’s President and Chief Executive Officer, Andrew Rees, the most recent financial quarter is still promising and released the following statement about Crocs Inc.
“I’m very pleased with our most recent quarter. Revenues and gross margin exceeded our guidance, and our diluted earnings per share were 75 percent above last year’s second quarter based on the strength of our product and the growing demand for our brand. Our clogs and sandals continue to perform well, and we are well positioned for the back half of the year.”
Shares have also risen 43 percent since the start of the year and this may be, in part, thanks to their innovative — albeit dubious as far as fashion trends go — new range of high heel crocs, as previously reported about by the Inquisitr.