Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Footwear maker Crocs plans to outrun supply chain woes; shares jump

Stock MarketsOct 21, 2021 10:46AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

(Reuters) - Crocs (NASDAQ:CROX) Inc raised the lower end of its annual revenue forecast, as it prepares to counter supply constraints by shifting some production out of Vietnam where factory shutdowns have pinched shipments, sending its shares up 12%.

The company, known for its rubber clogs, said on Thursday it would move production to China, Indonesia and Bosnia, from Vietnam which had become a manufacturing hub for many companies across the world, especially apparel.

Crocs had planned on 70% of its production coming from Vietnam in 2021, before deciding to move out some output, Chief executive Officer Andre Rees said on an analyst call. The company did not say how much production it was moving out of the country.

Many factories in Vietnam's manufacturing hubs have been shut or are operating with drastically fewer on-floor workers since mid-July due to a surge in Delta variant cases, hitting supplies of major clothing companies including Nike Inc (NYSE:NKE), Abercrombie & Fitch and Adidas AG (DE:ADSGN).

Nike has warned of delays during the crucial holiday shopping season due to supply issues and said it would take several months to resume full production in Vietnam, where about half its footwear is produced.

Crocs, meanwhile, said it would be able to ramp production back up quickly due to the simplicity of its shoes. The company added that it was also avoiding port delays on the U.S. West coast by switching to East coast docks.

It expects revenue for fiscal 2021 to rise 62% to 65%, up from its prior forecast of a 60% to 65% increase.

Revenue for the third quarter ended Sept. 30 jumped 73% to $625.9 million, topping analysts' average estimate of $610 million, according to Refinitiv IBES, as the company benefited from higher prices and fewer discounts.

Footwear maker Crocs plans to outrun supply chain woes; shares jump
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email