Footwear brand Crocs is hoping that an increased marketing spend will help turn around the business after it posted a fall in profits in its second quarter.
Gross profit for the manufacturer for the second quarter of 2014 dropped to 53.7 per cent of sales, down from 55.2 per cent in the same period the previous year.
Crocs, which shot to fame with its brightly coloured rubber clogs, said it will increase its marketing spend by about 50 per cent and plans to create a “clearer and consistent” product portfolio and message to streamline its approach.
The brand has also been stung by overexpansion and announced a four-point strategy for long-term improvement, which includes the closure of around 75 to 100 stores with 183 global positions scrapped with immediate effect.
The company revealed that it intends to focus on its core molded footwear heritage, as well as develop innovative casual footwear platforms and explore “strategic alternatives” for non-core brands.
"We have identified the key strategic and structural improvements that we expect will allow the company to achieve its potential," said Crocs president and principle executive officer Andrew Rees.
"We have a clear, well-defined strategy for addressing these issues and improving performance. Work is underway already to drive significant change throughout our company in four key areas. Our objective is to create a more efficient organization that can sustain profitable growth in a multi-channel global business model.”
Crocs is still searching for a permanent chief executive after John McCarvel stepped down from the position in December 2013 after being pressured by investors over falling sales.