Crocs to close all manufacturing plants

Source CBS News

Source CBS News

Footwear brand Crocs says it will close its last manufacturing facility, located overseas, but reassured customers that its signature shoe would remain in production.

Executive vice president Carrie Teffner will leave the company by next April, but is stepping down as CFO on August 24. In a statement later provided to Mashable, a representative for Crocs said the company is "simply shifting production to third parties to increase our manufacturing capacity". She plans to leave Croc Inc.by April 1, 2019.

Fans of those famous foam-clog shoes, however, have no reason to worry about the company folding anytime soon.

The news was announced on an earnings call.

"Revenues and gross margin exceeded our guidance, and our diluted earnings per share were 75% above last year's second quarter based on the strength of our product and the growing demand for our brand".

In the latest quarter, Crocs said it closed 28 retail sales locations, leaving it with less than 400 around the world.

Crocs said it's closing all of its company-owned manufacturing facilities "in connection with ongoing efforts to simplify the business and improve profitability".

Anne Mehlman, a former vice president of corporate finance for Crocs and current CFO of Zappos, will take over as CFO.

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