Crocs European managing director Vince Gunn has said he cannot rule out UK store closures as part of a global scaling back of its portfolio, but added the country would remain a “strong focus”.
The footwear business announced plans last week to close up to 100 stores and make 183 positions redundant across all markets following a 17% decline in operating profit for the second quarter to June 30, to $41.9m (£24.5m).
The global store portfolio will now be reviewed and of the 100 to be closed, between 25 and 30 will be in Europe. Crocs’ 17 UK stores, in locations such as Westfield London and Stratford, are among those under review.
Although he could not confirm what the outcome of the review would be for the UK, Gunn told Drapers the European side of the company was in “great shape”.
“The European business continues to grow and the UK is in a good position. The store closures will mean there will be a stronger focus on the UK as more attention will be paid to this market.”
Last week, Crocs president Andrew Rees said it needed “dynamic change” in its strategy, organisation and approach to the market and would cut the number of styles by up to 40%, ditching plans for boots and dressier footwear in markets outside Europe.
Crocs sells 300 styles in the US, but 190 are sold into Europe and Gunn insisted this would remain largely intact, with boot styles continuing to be a substantial part of the business.
He said: “We have been really encouraged by customer feedback on our wider product range and the UK is a strong strategic market for our boot line. We will continue to invest in this significant part of the company.”
European revenue growth is currently outpacing the wider company. Global sales grew 3.6% to $376.9m (£220m) in the second quarter while in Europe, which includes the UK, revenues climbed 21% to $72.8m (£42.8m).