Crocs Inc. said Monday it has eliminated 183 jobs and will close or restructure up to 100 company-owned stores in the wake of a sharp decline in second-quarter profits.
The Niwot-based maker of resin-molded shoes said a majority of the job cuts took place Monday.
The company on Monday reported second-quarter operating income of $41.9 million, down 17 percent from the same period in 2013. Net income to shareholders fell more steeply, dropping 45 percent to $19.5 million compared with the second quarter of 2013. Revenue increased 3.6 percent to $376.9 million.
Crocs president Andrew Rees said in a statement that the earnings report shows “the need for dynamic change in our strategy, organization and approach to the market.”
Locations of the job cuts were not announced, with Crocs saying only that they were “global.” The cuts are expected to save $4 million in 2014 and $10 million in 2015.
Closing 70 to 100 company-owned stores, or converting them to non-company-owned “partner stores,” will cut sales by an estimated $35 million to $50 million, but also will reduce expenses by $17 million to $25 million.
Crocs said it will focus on larger markets, “moving away from direct investment in the retail and wholesale businesses in smaller markets.”
“We are confident we have the right plan in place for driving performance improvements at Crocs, with critical implementation steps already underway,” Rees said.
Steve Raabe: 303-954-1948, sraabe@denverpost.com or twitter.com/steveraabedp
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