Crocs withdraws first quarter and full year outlook

United States
Published:  06 April, 2020

The U.S. headquartered footwear manufacturer is withdrawing its first quarter and full year 2020 outlook provided on February 27 due to the continued global disruption and uncertainty related to COVID-19.

All Crocs’ company-operated retail stores in North America are to remain closed until further notice, and many retail stores in Europe are also currently closed in compliance with local regulations. Customers, however, may continue to enjoy shopping on its e-commerce platform. The company said it maintains ample access to liquidity and expects a first quarter fiscal 2020 ending cash and cash equivalents balance between US$90 million and US$100 million with borrowings outstanding on the Credit Facility of up to US$355 million, leaving remaining capacity of approximately US$145 million on the US$500 million Credit Facility. During the first quarter of fiscal 2020, Crocs repurchased 1.6 million shares of its common stock for US$39.2 million, at an average price of US$25.13 per share.

On March 25, Crocs announced “A Free Pair for Healthcare” programme, whereby the company will offer healthcare workers across the U.S. the opportunity to get a free pair of shoes while supplies last, choosing from select Crocs Classic Clogs and Crocs At Work styles, with free shipping through its website. “Starting today, Crocs is immediately prepared to fulfil and ship up to 10,000 pairs per day to our heroes in healthcare. The duration of our giveaway will depend on our level of inventory and the amount of requests we receive”, said Andrew Rees, President and CEO, Crocs. In addition to the free online requests for individual healthcare workers, Crocs said it is also committed to donating up to 100,000 pairs of shoes to be distributed across a number of select healthcare facilities and organisations in a dual effort to get as much product as possible into the hands of those who need it most during the COVID-19 crisis.

Credit: Crocs