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A snarled global supply chain is hurting retailers, from shoe brands to department store chains, and threating their performance this holiday season.
But Crocs says it has created a playbook to manage through the crisis with mitigated impact. On Thursday, the company's fiscal third-quarter earnings and sales smashed Wall Street estimates, and Crocs hiked its full-year revenue outlook. The news sent Crocs shares soaring; the stock was recently up about 7%.
Chief Executive Andrew Rees explained on an earnings call a key advantage is the fact that the retailer's clog shoes are easy to make, and so the company faces fewer hurdles in shifting production around, when needed.
"Our shoes are really simple, and so [swapping] factories can be very, very quick," Ress explained. "The classic clog has three components, two of which are made on-site, so you don't have a lot of external logistics to be able to get started. We think we're competent in terms of rapid manufacturing."