Crocs is ending its ‘exclusive’ deal with Chogori Retail to open 60 stores in 3 years. Instead the marmite of the shoe world is planning to partner with a number of companies in India to gain further exposure.
The Crocs and Chogori Retail collaboration began in 2007 providing the US retailer with its first stint in India. However, General Manager of Crocs India now feels it’s time to move on in order to push the company further by, “shedding some of the partners that don’t, can’t or won’t grow with us whatever the reason might be”.
The company ending the relationship comes in a long line of store closures over the last year. In July 2014, The US footwear retailer announced that it planned to close 75 to 100 stores and that it would lay off 183 employees in the process. Just under a dozen of its exclusive India stores have been shut down in the last eight months already.
Nissan Joseph said that the Chogori stores could continue until summer, “Some will reopen in different locations inside the mall and some will reopen through new franchise partners”.
Gregg Ribatt, the newly appointed Chief Executive Officer of Crocs sees 2015 as a transitional year for the company. He expects a difficult first quarter in 2015 due to declines in the company’s China business:
“We expect Q1 revenues to be down on a constant currency basis by 10% to 12%, to a range of $260 to $265 million, driven primarily by declines in our China business. We expect the declines to moderate substantially in Q2 and growth to return in the second half of 2015 as many of the strategic changes we implemented in late 2014”
The financial stats produced February 16 2015 were titled, “Revenues in Line With Expectations”. Ribatt said the business was flat last year across all regions:“Excluding certain non-recurring and special charges, the company reported non-GAAP adjusted net income attributable to common stockholders of $50.0m for the year and a non-GAAP adjusted net loss of $30.0m for the fourth quarter”.
The shoe manufacturer is hoping to reinvest in its more popular areas to ensure its future survival.