Crocs Sees Minimal Impact from China Tariffs
If the U.S. imposes 25% tariffs effective Aug. 1 as threatened, Crocs estimates that its exposure will be $5 million this year but its ongoing diversification efforts will considerably mitigate that in 2020. It began the year supplying the U.S. with about 20% of its needs from China but that has since increased to 30% as demand for basic styles increased, but CROX believes that China will account for about 10% of its needs in 2020. Its largest sourcing base is already located in Vietnam.
Meanwhile, it sees plenty of opportunity to continue expanding its business, it tells the Stifel Nicolaus ... Log in to view full article.