Crocs Closing Overseas Plants In Favor Of Third-Party Manufacturers

Crocs Inc. announced some significant changes this week but has assured customers the business will stay afloat. The footwear company has revealed plans to close the remainder of its manufacturing plants.

The Niwot, Colorado-based shoemaker, in a press release, said it was closing its facilities in Mexico and Italy. Despite the closures, its product production will continue. Crocs said it looks to outsource its production going forward.

"In connection with ongoing efforts to simplify the business and improve profitability, during the second quarter, the company closed its manufacturing facility in Mexico and moved ahead with plans to close its last manufacturing facility, which is located in Italy," the company said.

CNBC reports that representatives for Crocs said the company would continue to make its shoes through a third-party manufacturer. "As we streamline our business to meet growing demand for Crocs, we're simply shifting production to third parties to increase our manufacturing capacity," the company wrote.

The initial press release from Crocs. revealed its inventory fell 16.6 percent to $129.9 million as of June 30 compared to $155.7 million the same time last year.

The publically-traded company said it still expects revenues between $240 to $250 million for its third quarter. Crocs shuttered of its 28 retail shops in the latest quarter, according to the Denver Business Journal. Last March, it said it planned to close about 160 of its 558 stores by the end of the year.

The shuttering of its production plants isn't the only big switch-up for Crocs. Additionally, Carrie Teffner, Executive Vice President and Chief Financial Officer, is expected to step down on April 1, 2019. Anne Mehlman, former Vice President of Corporate Finance for the shoemaker and the current CFO of Zappos.com Inc., will fill Teffner's role, the company said.

Since its launch in 2002, Crocs has become popular among customers shopping for comfortability. It has sold more than 300 million pairs in over 90 countries worldwide and has more than 4,000 employees globally.