Is Crocs going out of business?
There have been rumors swirling that the comfortable footwear maker may be going out of business, but the company insists that it will be sticking around for a while. The rumors came as the company announced that it was shuttering the doors of its last manufacturing stores on Tuesday.
“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,” Crocs said in a statement Tuesday.
It is still unclear how exactly the company will continue to manufacture its shoes in its statement, which blew up Twitter with rumors that some people’s favorite shoes may no longer exist in the near future. However, Crocs confirms that it is still alive and well.
“As we streamline our business to meet growing demand for Crocs, we’re simply shifting production to third parties to increase our manufacturing capacity,” representatives wrote. The company also posted its latest quarterly earnings results on Tuesday, which came in ahead of analysts’ expectations in the profit and revenue fronts.
CROX stock was down about 0.6% on Friday following the news, although the stock has performed surprisingly well throughout the week despite the company’s Tuesday announcement.