Crocs to reduce sourcing from China
The footwear company known for the iconic clogs says the amount of US products sourced from China will be below 10% for 2020. Currently, Crocs imports 30% of its US product from China
As the United States government continues to threaten to expand current tariffs to cover footwear imports from China, Crocs says they do not anticipate that the tariffs, if put into effect, will have a material adverse impact on their business due to a combination of factors.
The company relies on a globally diversified sourcing base. Crocs currently imports approximately 30% of their US product from China. Assuming a 25% tariff takes effect on the 1st of August 2019, the company estimates the 2019 impact could reach approximately 5 million US dollars.
Crocs believes the current sourcing mix reflects the need to balance ramping up incremental supply to meet the growing demand for products and continuing the multi-year effort to reduce sourcing from China. Based on that and on what is known so far the company expects "the amount of US product sourced from China will be below 10% for 2020".
Photo by Annie Spratt on Unsplash
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