OPEN LETTER FROM ROBIN AKEROYD MANAGING DIRECTOR OF CROCS EUROPE
Response to all media with regard to the Washington Post article 16-07-2009
18 July 2009
I am writing in response to all the media that have published new pieces based on the Washington Post article from July 16th 2009. Crocs is a global brand which has constant worldwide media attention. Different media have published the article entitled “Once-Trendy Crocs Could Be on Their Last Legs”. The article painted the picture of Crocs as a product of the economic boom – a one-shoe company – but now is a dead brand. The Washington Post suggests in the article Crocs is going down but this is only an assumption and not based on any new facts.
“(…) we face challenges resulting from rapid growth”, states John Duerden CEO of Crocs. Crocs has taken certain actions to address the challenges it faces (not unique to Crocs in the current economic situation), including a new executive team in both US and Europe, completing the necessary restructuring activities that have started last year and paying down debt. Per end of quarter one in 2009, Crocs has decreased its borrowing by 12% to $19.8 million. The cash and cash equivalents at the end of quarter one 2009 is $50.9 million. Crocs also successfully reduced the inventory position by over 50% over the last year looking at quarter one 2009 results. I am confident that through focused internal efforts as well as deeper working relations with our vast retail base, Crocs will continue to prove that it represents a sustainable proposition within the footwear market.
I would like to highlight that the Crocs brand is sold today in more then 120 countries. We have over 100 million happy feet that are testament to the benefits that Crocs has brought to the global footwear market. We have 120 different styles of sandals, boots, heels, wedges and flats. You can review for yourself on our website www.crocs.eu. Crocs is here to stay and has continually invested in product development which has generated constant demand.
Crocs will continue to innovate with its unique Croslite™ technology and continue to drive the comfort moulded footwear category to produce durable and affordable shoes in a wide variety of styles for men, women and children. This is a good business to be in at a time when families are watching their budgets.
I am confident in the future of our company and appreciate the support of our many loyal customers, retailers, investors and employees around the world.
Robin Akeroyd
Managing Director
Crocs Europe