Crocs CFO says inventory discipline is starting to pay off
Crocs CFO Patraic Reagan says the company’s tighter discounts, product pullbacks and stricter inventory controls are beginning to pay off after a period of bloated inventory and slowing sales.
CROX Plan to Turn Short-Term Pain Into Long-Term Gain - WSJ.
When Patraic Reagan took over as Crocs's CFO a year ago, it was just weeks after executives had announced that it was time to make "bold decisions" for the health of the business.
The footwear maker behind its flagship line and the HeyDude brand was struggling with bloated inventory and slowing sales, but it didn't want to slash prices to move stock.
Instead, the company cut back on certain discounts, pulled some products from shelves and tapered the availability of others.
Reagan spent his first 12 months with Crocs executing what he calls an "aggressive approach" to stabilize the company.
But now, the commitment to selling more items at full price and stricter inventory controls-as well as fresh styles-are starting to pay off.