Crocs reports operating loss of 428 million dollars

Crocs, Inc. reported a substantial decline in operating profit for the second quarter of its financial year. The company swung from a profit of 326 million dollars to a loss of 428 million dollars. This represents a decrease of 231.2 percent.

In the quarterly report, Crocs, Inc. CEO, Andrew Rees, explained the figures. Due to uncertain and unpredictable circumstances, the company opted for cost savings. The company reduced inventory and cut back on promotional activities. “While these initiatives impact our top line in the short term, they will position us for profit and margin expansion and support our cash flow over the long term.”

Crocs, Inc. is the parent company of the Crocs and HeyDude brands. The entire group recorded revenue of 1.14 billion dollars, reflecting an increase of 3.4 percent on the year prior.

The Crocs brand recorded growth of 5 percent. This brought revenue for the second quarter to 960 million dollars. However, the HeyDude brand saw a 3.9 percent decline in revenue during the period, resulting in a revenue of 190 million dollars.