11 Jun Crocs To Slash Sourcing Of U.S. Products From China
Crocs Inc. said it expects the amount of U.S. products sourced from China will be below 10 percent for 2020. Currently, Crocs imports approximately 30 percent of its U.S. product from China.
The company provided an update on its tariff exposure and mitigation plans due to a scheduled appearance Tuesday at Stifel 2019 Cross Sector Insight Conference.
“We do not anticipate that the tariffs, if put into effect, will have a material adverse impact on our business,” said Crocs in a statement.
Assuming a 25 percent tariff takes effect on August 1, 2019, Crocs estimates the 2019 impact at approximately $5 million. Crocs said, “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,” Crocs said in a statement.
The company also said it is evaluating various mitigation initiatives which will be implemented to lessen the impact on Crocs of any tariffs ultimately put into effect.