Crocs’ comeback plan is a bust.
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.
Net income fell a whopping 44% for the second quarter to $US19.7 million, though revenues rose 3.6 per cent to $US376 million.
Crocs President Andrew Rees said in a statement that the performance shows “the need for dynamic change in our strategy, organisation 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% to 40%, as a result.
Crocs’ colourful plastic clogs soared in popularity a decade ago.
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