Crocs pulls guidance, borrows $50M as stores remain closed due to coronavirus

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NIWOT — Shoemaker Crocs Inc. (Nasdaq: CROX) raised its credit limit from $450 million to $500 million and pulled its guidance to shareholders Monday as it extends its store closures in North America indefinitely.

The Niwot-based company axed its guidance for the first quarter of 2020 and for the rest of the year, following in the footsteps of hundreds of other companies due to the widespread economic slowdown caused by efforts to slow the spread of the COVID-19 virus around Colorado and the U.S.

Crocs also said it raised its credit line from PNC Bank (NYSE: PNC) an additional $50 million, according to filings with the U.S. Securities and Exchange Commission Monday. Crocs also pulled its quarterly dividends for the foreseeable future.

“Our balance sheet remains strong, but during these times of uncertainty, we feel it is prudent to shore up liquidity and maintain flexibility,” Chief Financial Officer Anne Mehlman said in a prepared statement.

The company plans to use $10 million in that new credit line to cover the cost of its plan to donate shoes to health-care workers.

Crocs previously said it would close its stores through March 27, but now will keep them closed until further notice.

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