Crocs' strategy has flopped
The company plans to close stores and lay off employees, and says it needs to make some deeper changes.
The company is cutting jobs and closing stores amid plummeting net income.
The company said Tuesday that it plans to close 75 to 100 of its 624 stores globally and lay off 183 employees out of more than 5,000. Its stock price rose more than 12 percent to $16.68 as investors applauded the move.
Net income fell a whopping 44 percent for the second quarter to $19.7 million, though revenues rose 3.6 percent to $376 million.
Crocs President Andrew Rees said in a statement that the performance shows "the need for dynamic change in our strategy, organization and approach to the market."
Crocs was hoping that a new, sleeker line of shoes that was released this year -- including ballet flats, pumps, and open-toe wedges -- would revitalize the brand. But the company's new shoe styles failed to offset falling demand for its signature plastic clogs.
The new styles were "too big a reach for the brand," Rees told The Wall Street Journal.
The company is now planning to cut back on its range of styles by 30 percent to 40 percent as a result.
Crocs' colorful plastic clogs soared in popularity a decade ago.
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The fad is done just like the decade. You made your quick buck.....now move along.
Don't over-analyze it.
There are two kinds of people, the kind that know Croc's look ridiculous, and those who are tired of being laughed at when they walk by a group of people and finally figured out why.
I didn't know that Crocs had stand-alone stores, so them closing is not a surprise to me.
Ive never owned a pair of Crocs.
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