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.

Questions or comments? Please feel free to contact the editors


Small Belgian brewery conquers Brazil thanks to playing cards

13/09/2017

Het Nest, a small brewery from Turnhout, will get its beers brewed in Brazil as well. It has struck a deal with Cervejaria Premium Paulista, which will brew and distribute the beers locally.

Price cuts drive 25 % more customers to Whole Foods

12/09/2017

Supermarket chain Whole Foods welcomed an additional 25 % of customers in the first few days following Amazon’s price cuts.

Ter Beke enters British food service industry

12/09/2017

Belgian food group Ter Beke has acquired a 90 % stake in British competitor KK Fine Foods for an undisclosed fee. The current shareholders hold onto the other 10 %.

Godiva wants to conquer the world through supermarkets

12/09/2017

Belgian praline brand Godiva will soon sell its chocolate in supermarkets all over the world after signing a deal with chains like Albert Heijn and Sainsbury’s. Previously, it sold nearly all its chocolate through its own store network.

Insight: Xavier Piesvaux' seven labours at Delhaize

10/09/2017

Can one French and several Dutch managers do what the Belgian management failed to do these past few years at Delhaize Belgium? Its new CEO will face plenty of challenges: we count at least seven.

Nestlé USA acquires food manufacturer Sweet Earth

08/09/2017

Nestlé USA has acquired American Sweet Earth for an undisclosed fee. The company mainly manufactures meat replacements, a rapidly-growing market, but also several frozen meals.

Back to top