Crocs, Inc. (NASDAQ:CROX) has announced a series of Crocs store closings in light of the company’s latest quarterly earnings results.
The footwear maker posted net losses of $44.5 million for its fourth quarter, or 60 cents per share, which was better than the $73.9 million in losses from the fourth quarter of 2015, but a loss nonetheless.
However, Crocs experienced a revenue fall as net sales lowered to $187.4 million, marking a $21.3-million decline compared to the same period the previous year. Additionally, Gregg Ribatt will step down as CEO on June 1, while Andrew Rees will become the president and CEO.
Rees has been in the company since becoming president in 2014. The company also announced that there will be around 160 Crocs store closings, amounting to about 28% of all locations.
The move will be complete by the end of 2018, and it is part of a broader effort to cut costs by $75 million to $85 million. Crocs had 558 stores around the world by the end of 2016.
For the full fiscal year 2016, the retailer posted revenue of $1.04 billion, which was a 4.7% decline compared to the previous year on a constant currency basis. Net loss on a GAAP basis tallied up to $31.7 million, or a loss of 43 cents per share.
Crocs also hopes to add $30 to $35 million in earnings every year, before interest and taxes.
CROX shares fell 3% Wednesday.