Crocs closes ultimate production plant, says, ‘We are not going anyplace’

Crocs introduced that it was once ultimate the ultimate of its production retail outlets on Tuesday, however the sneakers corporate asserted that it was once now not going into bankruptcy.

“In reference to ongoing efforts to simplify the trade and make stronger profitability, all over the second one quarter, the corporate closed its production facility in Mexico and moved forward with plans to near its ultimate production facility, which is positioned in Italy,” the corporate stated in a observation Tuesday.

The corporate didn’t be offering explanations as to how it will proceed to fabricate footwear, sending enthusiasts right into a Twitter frenzy. Nonetheless, the corporate asserted that it was once now not going into bankruptcy.

Crocs didn’t reply instantly to CNBC’s request for additional remark.

Stocks closed down 2.65 % at $17.64 Tuesday after the announcement was once made as a part of the corporate’s 2d quarter profits free up. The inventory rose greater than three % in Thursday afternoon buying and selling.

Crocs reported profits of 35 cents in keeping with proportion, beating the 31-cent consensus estimate of analysts as tracked by means of Thomson Reuters. Income for the quarter got here in at $328 million, beating a FactSet consensus estimate of $321 million.

The corporate nonetheless expects expects income between $240 million and $250 million for the 3rd quarter, consistent with consensus estimates, in spite of the closures.

The corporate additionally introduced that Carrie Teffner, government vp and CFO of the informal sneakers emblem, can be leaving the corporate subsequent April. Teffner will probably be succeeded as CFO by means of Anne Mehlman, a former vp of company finance for the shoemaker and the present CFO of Zappos.

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