Plastic footwear manufacturer Crocs Inc is closing down its two remaining own manufacturing facilities in Mexico and Italy as part of its turnaround programme which was launched in 2014.
In an investors presentation 8 Aug, the Niwot, Colorado-based company said it would outsource all production and close down 160 stores to bring the total number of outlets to 400.
Additionally, to improve profitability, the company is looking to reduce its SG&A (selling, general and administrative) run rate by approximately $75-85m by 2019.
This, Crocs said, will be achieved 70% through store closures and 30% by increasing operating efficiencies, which will include global ERP (enterprise resource planning) and standardisation.
Crocs reported strong sales in the second quarter results of 2018, with revenues growing 4.7% year on year to $328m (€286m).
The growth was achieved despite a $22m (€19.2m) loss due to operating fewer stores and business model changes.
The company’s e-commerce grew 23.8%, wholesale grew 7.2%, and retail comparable store sales increased 7.1%.