Crocs to close last of manufacturing plants, but says, 'We aren't going anywhere'
- The footwear company announced that it was closing the last of its manufacturing stores.
- In a note to CNBC, Crocs representatives wrote that the company would continue to make its signature footwear through third-party manufacturers.
Crocs announced that it was closing the last of its manufacturing stores on Tuesday, but the footwear company asserted that it was not going out of business.
"In connection with ongoing efforts to simplify the business and improve profitability, during the second quarter, the company closed its manufacturing facility in Mexico and moved ahead with plans to close its last manufacturing facility, which is located in Italy," the company said in a statement Tuesday.
The company did not offer an explanation in the release as to how it would continue to manufacture shoes, sending fans into a Twitter frenzy. Still, the company asserted that it was not going out of business.
In a note to CNBC, Crocs representatives said the company would continue to make its signature footwear through third-party manufacturers: "As we streamline our business to meet growing demand for Crocs, we're simply shifting production to third parties to increase our manufacturing capacity."
Shares closed down 2.65 percent at $17.64 Tuesday after the announcement was made as part of the company's second-quarter earnings release. The stock rose more than 3 percent in afternoon trading.
Crocs reported earnings of 35 cents per share, beating the 31 cents a share consensus estimate of analysts as tracked by Thomson Reuters. Revenue for the quarter came in at $328 million, beating a FactSet consensus estimate of $321 million.
The company confirmed it expects revenue between $240 million and $250 million for the third quarter, in line with consensus estimates, despite the closures.
The company also announced that Carrie Teffner, executive vice president and CFO of the casual footwear brand, would be leaving the company next April. Teffner will be succeeded as CFO by Anne Mehlman, a former vice president of corporate finance for the shoemaker and the current CFO of Zappos.