NIWOT, Colo.—Footwear manufacturer Crocs Inc. is closing down its two remaining manufacturing facilities in Mexico and Italy as part of its turnaround program that launched in 2014.
In an Aug. 8 investors presentation, the Niwot-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 selling, general and administrative run rate by approximately $75 million to $85 million by 2019.
This, Crocs said, will be achieved 70 percent through store closures and 30 percent by increasing operating efficiencies, which will include global ERP and standardization.
Crocs reported strong sales in the second quarter results of 2018, with sales growing 4.7 percent year-on-year to $328 million.
The growth was achieved despite a $22 million loss due to operating fewer stores and business model changes.
The company's e-commerce grew 23.8 percent, wholesale grew 7.2 percent, and retail comparable store sales increased 7.1 percent.