NIWOT, Colo.--(BUSINESS WIRE)--
Crocs, Inc. (NASDAQ: CROX), a world leader in innovative casual footwear
for men, women, and children, today provided details about the potential
impact of proposed footwear tariffs on product imported into the United
States from China.
Potential Impact of U.S. Imposed Tariffs:
The United States government continues to threaten to expand current
tariffs to cover footwear imports from China.
We do not anticipate that the tariffs, if put into effect, will have a
material adverse impact on our business for the following reasons:
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Crocs has a globally diversified sourcing base.
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We currently import approximately 30% of our U.S. product from China.
Assuming a 25% tariff takes effect on August 1, 2019, we estimate the
2019 impact at approximately $5 million.
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Our current sourcing mix reflects our need to balance ramping up
incremental supply to meet the growing demand for our product and
continuing our multi-year effort to reduce our sourcing from China.
-
Based on what we know today, we expect the amount of U.S. product
sourced from China will be below 10% for 2020.
-
We are evaluating various mitigation initiatives which will be
implemented to lessen the impact on Crocs of any tariffs ultimately
put into effect.
The Stifel 2019 Cross Sector Insight Conference:
The Company will be presenting at the Stifel 2019 Cross Sector Insight
Conference today at 10:20 am ET at the Intercontinental Hotel in Boston,
MA.
A live broadcast of the Company's presentation will be available by
clicking the 'Investor Relations' link under the Company section on www.crocs.com.
An audio replay of the webcast will be available on the Crocs website
after the presentation.
About Crocs, Inc.:
Crocs, Inc. (Nasdaq: CROX) is a world leader in innovative casual
footwear for women, men, and children, combining comfort and style with
a value that consumers know and love. The vast majority of shoes within
Crocs’ collection contains Croslite™ material, a proprietary, molded
footwear technology, delivering extraordinary comfort with each step.
In 2019, Crocs declares that expressing yourself and being comfortable
are not mutually exclusive. To learn more about Crocs or our global
Come As You Are™ campaign, please visit www.crocs.com
or follow @Crocs on Facebook, Instagram and Twitter.
Forward Looking Statements:
This news release includes “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements address expectations relating to the amount of product being
imported into the U.S. from China and the impact that imposition of
additional tariffs could have on future results. These statements
involve known and unknown risks, uncertainties and other factors, which
may cause our actual results, performance or achievements to be
materially different from any future results, performances, or
achievements expressed or implied by the forward-looking statements. For
a full description of various risks and uncertainties described in our
most recent Annual Report on Form 10-K, consult the discussion under the
heading “Risk Factors” in that document along with our subsequent
filings with the Securities and Exchange Commission. Readers are
encouraged to review that section and all other disclosures appearing in
our filings with the Securities and Exchange Commission.
All information in this document speaks as of June 11, 2019. We do not
undertake any obligation to update publicly any forward-looking
statements, whether as a result of the receipt of new information,
future events, or otherwise.
Category:Investors
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190611005075/en/
Investors:
Crocs, Inc.
Marisa Jacobs, Global Head of
Investor Relations
Phone: 303-848-7322
Email: mjacobs@crocs.com
Source: Crocs, Inc.