Crocs announces closures, new CFO in Q2 earnings report

NIWOT — Crocs Inc. (Nasdaq: CROX) grew its second-quarter earnings and revenue, but also announced it is shuttering the last of its manufacturing facilities.

The company, which released its second-quarter earnings, said it closed its manufacturing facility in Mexico and was moving ahead with plans to close its last manufacturing facility, located in Italy. The move is “in connection with ongoing efforts to simplify the business and improve profitability, according to the company’s statement. A request for more information regarding the closure of the production facilities and how Crocs would continue its production was not immediately returned prior to publication.

Crocs posted second-quarter earnings per share of 35 cents, beating analyst expectations by 4 cents. Net income grew from $18.1 million during the second quarter of 2017 to more than $30 million.

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The Niwot-based shoe manufacturer grew revenue by 4.7 percent year-over-year to $328 million, beating analyst expectations by $6.24 million. The company said the growth in revenue was managed despite losing approximately $22 million due to operating fewer stores and changes to its business model.

Looking ahead, Crocs said it expects third-quarter revenue to be between $240 million to $250 million, compared to $243.3 million in the third quarter of 2017. Revenue for the full year is expected to increase by the low single digits over last year’s revenue of just more than $1.02 billion.

Crocs also announced that the company’s chief financial officer, Carrie Teffner, plans to resign from the company effective April 1, 2019. The company is transitioning her successor, Anne Mehlman, who will take on the role of CFO effective Aug. 24, 2018. During the overlapping period, Teffner will take on the role of executive vice president of finance and strategic projects.