Major changes are coming to Crocs Inc., as CEO Gregg Ribatt steps down and approximately 160 stores are set to close in the coming months. The news came today, as the company announced a $31.7 million loss for fiscal 2016, with revenues falling to $1.04 billion from $1.09 billion in 2015.
“I’m very pleased with the operational progress made in 2016 as we continued to improve our product, systems, processes and team,” Ribatt said in a statement. “Given this progress, I am pleased to announce that the Board and I have determined that we are now in a position to consolidate the President and CEO roles.”
Ribatt, who has served as CEO for just two years, will be replaced by Andrew Rees, who will be named CEO and President of the company. Rees has been with Crocs since 2014 and held key positions at the retail consultancy L.E.K. Consulting and Reebok International before that. In the same statement, the company said that other executives can be expected to promoted from within.
The store closings represent about 28% of the company’s current retail footprint, with 558 stores, by 2018. The company estimates that shuttering the stores will save upwards of $75 million in expenses.
Looking ahead, the company said it expects 2017 revenue to be relatively flat compared to 2016.