Heavy fourth quarter losses for Crocs

Heavy fourth quarter losses for Crocs

Crocs’ management is feverishly trying to redirect the company’s course as it wants to get rid of its reputation of “that company of the iconic clog”, a piece of clothing that is burdened by a lousy and kitschy image.

10.7 million pairs of shoes

Sales wise, Crocs would not need to change its course at all, as the quarter ending on 31 December resulted in 10.7 million pairs of shoes sold, 9 % higher than the year before. Only half of those sales are from the well-known, colourful logs though, with the company banking on men’s golf shoes and several women’s collections.

Crocs performs especially well outside of the United States, where sales have dropped 8 %, as Europe nearly doubled its sales in the past quarter and Japan increased 22 %. These numbers create a 1.6 % turnover increase, to 228.7 million dollars (some 166.7 million euro).

Excess inventory

All things considered, the shoe producer is taking a 66.9 million dollar (48.8 million euro) loss, much higher than last year when the losses were at 3.6 million dollars (or 2.6 million euro). Large part of that loss was because of the excess inventory that had to be written off, worth 3.4 million dollars (2.5 million euro), which lead to Crocs not handing out any profit forecasts.

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