Crocs’ boss hits back at reports By Louise Cordell CROCS Europe’s managing director has hit back at media reports claiming that the company is on the brink of financial crisis. From 2007 to 2008 the brand swung from a profit of $168m to a loss of $185m and a recent series of job cuts led to stories appearing in the press suggesting that the brand was on its last legs. The Washington Post recently quoted a fund manager as saying “the company’s zombie-ish. They’re dead and they don’t know it.” Robin Akeroyd, Crocs Europe MD, has now issued a response refuting the claims. He said: “Crocs is a global brand which has constant worldwide media attention. “These articles paint a picture of Crocs as a product of the economic boom – a one-shoe company – but now a dead brand. “The Washington Post suggest in the article that Crocs is going down, but this is only an assumption and not based on any new facts.” He claims that the brand has taken action to address the challenges it is facing, completing restructuring activities and paying down debt. However, he points out that similar
action is being taken by many companies in the current economic climate and Crocs is by no means in a unique position. He added: “Per end of quarter one in 2009, Crocs has decreased its borrowing by 12 per cent to $19.8 million. “Crocs also successfully reduced the inventory position by over 50% over the last year looking at quarter one 2009 results. “I am confident that through focused internal efforts as well as deeper working relations with our vast retail base, Crocs will continue to prove that it represents a sustainable proposition within the footwear market.” Robin also confirmed that the brand is continuing to invest in product development in order to add to the 120 styles already available under the Crocs name. He added: “Crocs will continue to innovate and continue to produce durable and affordable shoes. “This is a good business to be in at a time when families are watching their budgets. I am confident in the future of our company and appreciate the support of our many loyal customers, retailers, investors and employees around the world.”
A page three model delivered Emu gifts to the England Cricket Team on the first day of the Ashes at Lords. As part of a summer long gifting initiative, Emu Australia presented the entire England cricket team with a pair of the brand’s latest leather flip flops.
Sales hot up due to weather FOOTWEAR sales have benefited from a spell of warmer weather according to the latest figures from the British Retail Consortium. Footfall increased as the sunshine brought shoppers onto the high street meaning that numbers and sales were up on a year ago throughout the UK as a whole. Results also showed that retail sales in central London in April
were 5.4 per cent higher than a year ago, on a like for like basis. However, the fact that Easter fell later this year combined with weather differences means it is difficult to predict whether the trend will continue. Finally, the favourable exchange rate has continued to attract overseas visitors, especially those from Western Europe, but the effect of sterling’s weakness on US visitors has been less marked.
Published on Jul 31, 2009