Colorful Crocs shoes are popular among hospital and restaurant workers.
Crocs, the shoe manufacturer known for its colorful, comfort-forward resin footwear, is closing the last of its company-owned manufacturing plants. The two overseas plants, one located in Mexico and one in Italy, will be closed by the end of the year.
Crocs, based in Niwot, Colorado, announced the closures Tuesday (Aug. 7) as part of its quarterly financial results, describing the move as an effort to “simplify the business and improve profitability.” The Mexico plant has already closed, and the Italy plant will close later this year.
It was not immediately clear what the future of the company’s manufacturing will be, though The Associated Press reports company leaders said they intend to outsource additional manufacturing.
In addition, Chief Financial Officer Carrie Teffner will step down from her role this month. Teffner, who joined Crocs in 2015, will be replaced by Anne Mehlman, who is currently the chief financial officer for online shoe retailer Zappos. Teffer steps down as CFO Aug. 24, but will remain with the company in an advisory role until April 2019.
Crocs, launched in 2002, skyrocketed in popularity thanks to restaurant, hospital and other workers who stand long hours and valued the comfortable rubberized slide-ons. More recently, however, sales results have been mixed. This year’s efforts to roll out a new high-heeled Croc caused an online stir, though it remains to be seen how sales will perform.
Crocs reported a second-quarter profit of $30.4 million, or 35 cents per diluted share.
