Crocs CEO Has Concerns About Labor, Transportation Costs

The transcript discusses the brand's strong trajectory and consumer shift towards comfort footwear, particularly Crocs. It highlights the impact of the Delta variant on supply chains, especially in Vietnam, and the resulting concerns about factory closures. Despite rising input costs, particularly in transportation, the brand has managed to expand its margins by raising prices and reducing promotions. The discussion also covers the brand's pricing power, which varies by region, and the competitive labor market, leading to wage increases to attract workers.

What has been a significant factor in Crocs' brand turnaround story?

• A decrease in global footwear demand

• The pandemic's influence on consumer comfort preferences

• The shift towards formal footwear

• The rise of high heels in the workplace

How has the Delta variant primarily affected Crocs?

• A decrease in online sales

• Higher demand for formal shoes

• Supply chain disruptions in countries like Vietnam

• Increased demand in brick and mortar stores

What is the main reason for increased input costs for Crocs?

• Increased labor costs in Europe

• Rising costs of advertising

• Increased ocean freight and transportation expenses

• Higher raw material costs

What strategy does Crocs use to manage rising costs?

• Decreasing employee wages

• Expanding into new markets

• Increasing prices and reducing promotions

• Reducing product quality

How has Crocs responded to the competitive labor market in the US?

• By raising the minimum wage to $15

• By reducing employee benefits

• By hiring fewer workers

• By outsourcing labor to other countries