Crocs to cut jobs, shutter stores after earnings shortfall
NIWOT, Colo. — Colorful shoemaker Crocs announced Monday night “strategic performance improvement initiatives”that will include 183 layoffs and the shuttering of retail stores.
The moves come after the company’s second-quarter earnings fell short of expectations. Crocs reported a net income of $19.5 million, or 19 cents per share on revenue of $376.92 million in the past three months. In the same three months in 2013, Crocs reported income of $35.36 million, or 40 cents per share, on revenue of $363.83 million.
“We have identified the key strategic and structural improvements that we expect will allow the company to achieve its potential,” Crocs President Andrew Rees said in a statement. “We have a clear, well-defined strategy for addressing these issues and improving performance. Work is underway already to drive significant change throughout our company in four key areas.”
Crocs will close or convert 75 to 100 Crocs-branded retail stores. It has 624 stores worldwide, but no stores in Colorado are expected to be closed or converted, but 70 of the 183 layoffs will come at Crocs’ headquarters in Niwot.