Crocs closing foreign plants, but not going out of business
Don't worry, Crocs are not going away, despite a social media clamor that took place when the company announced Thursday that it is closing its last manufacturing facilities.
The Colorado company that makes the colorful plastic shoes took to Twitter to quash rumors that the company is going out of business.
In fact, Crocs is profitable and its decision to close its factories in Mexico and Italy is just a move to cut costs and boost earnings.
The company then issued a statement Thursday afternoon voiding rumors that it was shutting down.
"There have been multiple media reports that Crocs is winding down production in our owned manufacturing facilities," the statement said. "While accurate, some people have interpreted that to mean that Crocs will no longer be making and selling shoes. Quite the contrary, Crocs will continue to innovate, design and produce the most comfortable shoes on the planet. As we streamline our business to meet growing demand for Crocs, we're simply shifting production to third parties to increase our manufacturing capacity."
Wall Street apparently likes the turnaround plan.
Earlier this week, earnings per share came in at 35 cents, 4 cents above analysts' estimates. Revenues beat targets, at $328 million, increasing 4 percent year over year, versus the $321.76 million that analysts predicted.
"We're extremely grateful, but not surprised, that our passionate fans are rallying around the brand today. Our future is bright, bold and colorful," the company said.