Crocs is closing all of its manufacturing facilities ‘to improve profitability’ 

Crocs shoes announces its closing all of its manufacturing facilities ‘to improve profitability’

  • Crocs says it will be closing its last two factories and outsourcing production
  • Chief financial officer Carrie Teffner will stand down at the end of March 2019
  • Shoe brand will also be closing 132 of its 530 stores by the end of the year 
  • Comes despite Crocs turning business around after years of declining growth

Crocs has announced that it is selling off its last two factories and that its chief financial officer will be leaving next year.

The shoe brand said it will be shutting down a factory in Mexico and another in Italy as it outsources production in the hunt for greater profits.

Meanwhile Carrie Teffner will be leaving the business at the end of March 2019 to be replaced by Anne Mehlman, of Amazon-owned shoe-seller Zappos.com.

Crocs is closing its last two manufacturing plants and losing its chief financial officer amid a shakeup aimed at increasing profits (file image)

The move comes after Crocs closed 28 of its 558 worldwide stores. The firm plans to close another 132 stores by the end of 2018.

Crocs suffered years of steadily declining growth with share prices more than halving between 2014 and 2017, when they hit a low of $5.94 each.

However, the company has since turned the business around including the launch of a high-heeled version of its signature shoe in July this year.

Share prices more-than tripled between May last year and June this year, and while values have tapered off since, the company seems intent on chasing further growth.

Crocs had been losing value for years but recently turned the business around and has almost tripled its value since May 2017 (file image)

Crocs had been losing value for years but recently turned the business around and has almost tripled its value since May 2017 (file image)

Crocs said it expects fiscal 2018 revenue of about $1.02 billion, slightly below analysts’ expectations of $1.05 billion. 

Andrew Rees, CEO and president, said: ‘Our clogs and sandals continue to perform well, and we are well positioned for the back half of the year.

‘We expect double digit e-commerce growth and moderate wholesale growth to more than offset lower retail revenues due to operating fewer stores and business model changes.’ 

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