Photo: Damian Dovarganes Associated Press
Created in 2002, the brand has passed 200 million pairs of shoes in 90 countries in 12 years.
Crocs, the brand of the famous clogs in plastic, will close its last two production sites, in Mexico and Italy, in order to improve its profitability and focus on its online development.
“In the context of ongoing efforts to simplify the business and improve profitability, the company has closed, during the second quarter, its site of production to Mexico and has decided to close its last production unit, which is situated in Italy,” writes Hooks in a press release posted this week on the occasion of the publication of its quarterly results.
Crocs, however, keen to reassure the fans, including Michelle Obama, worried about her future : “FALSE ALARM ! We aren’t going away, ” writes the group on its Twitter account. The company, whose headquarters is based in Niwot, Colorado, is going to outsource the production and focus on the development of its online activity. She has just hired as chief financial officer Anne Mehlman, a former leader of the website of shoes online Zappos.com, the property of Amazon. Ms. Mehlman will take up his functions on 24 August next.
The group has closed down some 158 stores, including 28 stores during the second quarter, and operates more than 400 stores across the world, which corresponds to the strategy laid out in the beginning of the year to close more than a hundred points of sale. These measures were to lose 22 million dollars in revenue to the group in the second quarter. Crocs has not given details on the future of employees affected by its restructuring, and merely say that it has already expensed in the accounts of the second quarter, and will still do so in the coming months.
All in all, the group is doing well : it has generated a net profit of 30.4 million, almost double the amount earned in the second quarter 2017 ($18.1 million). The turnover has increased by 4.7 % year on year to $ 328 million.
Created in 2002, the brand has passed 200 million pairs of shoes in 90 countries in 12 years. Since the crisis in 2007, and its delivery to afloat, the american company has faced many challenges, forcing them to diversify. In 2013, the fund Blackstone has invested $ 200 million in order to support the activity. As pointed out in Le Figaro at the time, Crocs notably in the face of competition from counterfeits.
With these new measures, Crocs wants to continue to reduce its costs and appeal to investors. It wishes to reduce its general and administrative costs between 75 and 85 million by 2019. And the closure of points of sale is expected to allow three-quarters of this relief. It also wants to ensure that its online sales will weigh heavier in the future. They have grown more than 27 % in the second quarter, one can read in The Echoes.
With The Duty