Plastic footwear maker Crocs is closing two factories
Plastic footwear maker Crocs is closing its two remaining manufacturing plants in Mexico and Italy as part of a turnaround plan it launched in 2014.
The Niwot, Colorado-based company said in an Aug. 8 investor presentation that it will outsource all production and close 160 stores, shrinking its total store count to 400.
In addition, to improve profitability, it plans to reduce SG& by 2019. A(selling, general administration and management) operating expenses by about US $75 million to US $85 million.
Crocs said this would be 70 percent through store closures and 30 percent through operational efficiencies, which include global ERP(enterprise resource planning) and standardization.
Crocs reported a strong second quarter of 2018, with sales up 4.7 percent year over year to $328 million.
The growth came despite a $22 million loss due to fewer stores and a change in its business model.
The company grew 23.8 percent in e-commerce, 7.2 percent in wholesale and 7.1 percent in retail comparable store sales