Crocs attacked an oversupply of aging inventory by ditching discounts and making products less available.
A year ago, the footwear maker was struggling with bloated inventory and slowing sales. But rather than slash prices, the WSJ's Jennifer Williams reports, the company opted to cut back on discounts, pull some products from shelves and sell fewer shoes to wholesalers.
Crocs bought back stale inventory of its struggling HeyDude brand, known for slip-on shoes, and provided retailers with financial support to discount products. The company reduced sales of its namesake foam clogs to wholesalers and cut back on direct-to-consumer discounts.
Getting rid of aged inventory made room for fresher designs, such as sandals, and helped the company sell more items at full price.
The moves led to short-term pain as sales fell for several quarters, but the efforts are now paying off.
The Crocs brand, which includes its namesake foam clogs, reported quarterly revenue of more than $1 billion for the first time for the period ended June 30. Executives project that HeyDude's revenue will grow by the end of the year.
Economy & Trade
The U.S. is escalating its trade war with Canada-but not until 2027. President Trump on Monday said the U.S. would impose 50% tariffs on automobiles and parts from Canada starting in January.
The WSJ's Gavin Bade, Amanda Coletta and Paul Vieira write that Trump's threat is the latest escalation in a tit-for-tat trade conflict that erupted over the weekend.
After last-minute talks fell apart, Trump imposed new tariffs on about 5% of imports from Canada early on Saturday. Canada then hit back with new retaliatory levies on U.S. products.
The U.S. today charges a 25% tariff on Canadian automobiles, with discounts for the American content in cars. A 50% levy could drive automakers to close factories in Canada, reshaping North American auto-manufacturing supply chains.
The latest threat heightens the risk the neighboring countries could descend into all-out economic conflict and casts further doubt over the future of the U.S.-Mexico-Canada Agreement.
Number of the Day
The value of freight moved between the U.S. and Canada in June, up 17% from the previous year, according to the Bureau of Transportation Statistics.
Quote of the Day
In Other News
Treasury Secretary Scott Bessent said the U.S. is launching a new campaign to isolate the Iranian regime. (WSJ)
Supply-chain software company Descartes Systems Group acquired freight brokerage platform Tai Software for $100 million. (Dow Jones Newswires)
Fast-fashion giant Shein priced its initial public offering in Hong Kong after a yearslong effort to go public. (WSJ)
The Chinese owner of bargain-shopping app Temu reported better-than-expected profit in the second quarter. (WSJ)
Hyundai Motor has reached a tentative wage agreement with its labor union, ending months of on-and-off walkouts that have disrupted production. (WSJ)
Shipping executives warned that an exemption for small batteries from hazardous-goods rules is increasing the threat of fires on containerships. (Financial Times)
Rates for longer-term tanker charters are soaring as the conflict between the U.S. and Iran continues. (TradeWinds)
Russia's grain exports through the Black Sea fell to the lowest level in 15 years. (Lloyd's List)
Klaus-Michael Kühne, the German billionaire who built his family freight-forwarding business into global logistics giant Kuehne+Nagel, died at age 89. (Splash 247)
A 94-year-old trucker is applying with Guinness World Records for the mark of oldest semitruck driver in the U.S. (Commercial Carrier Journal)
About Us
Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.
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