Crocs loses favour in Asia
Shoe brand Crocs is finding Asia a tough market with falling sales and bad debts from Chinese retailers.
In the last quarter, to September 30, sales declined nine per cent in Asia, at the same time as same store sales rose 10 per cent in the US and 13 per cent in Europe.
The company said the broader Asia market was “substantially impacted” by a weaker performance in China at both wholesale and retail level.
In Japan, same store sales were down nine per cent due to weaker demand and the falling value of the yen.
Jeff Lasher, Crocs CFO, said the company’s wholesale volume in China “declined significantly” and retail sales at comparable stores declined by double digits in China, Korea and Hong Kong.
“The quarter also was impacted by a reserve for doubtful accounts in excess of $5 million primarily as a result of delayed payments from partner-owned stores in China.”
The company’s global revenue rose 4.8 per cent in the quarter, to US$302.4 million.
Meanwhile, Crocs appointed a new GM of Greater China, Scott Yuan. A search is underway for a new CEO.