Crocs upped the lower end of its annual revenue projection as it prepares to address supply limitations by relocating some production out of Vietnam, where factory closures have stifled shipments, sending the company's stock up 13%.

The company, which is known for its rubber clogs, announced on Thursday that it will shift production from Vietnam to China, Indonesia, and Bosnia and Herzegovina, from where it had become a manufacturing hub for many companies throughout the world, particularly in the garment industry.

Crocs had expected to source 70% of its output from Vietnam in 2021 before opting to shift some production, according to Chief Executive Officer Andre Rees, who spoke on an analyst call. The corporation did not specify how much production would be exported.

Due to a surge in Delta variant cases, many factories in Vietnam's industrial hubs have been closed or are working with considerably fewer on-floor personnel since mid-July, affecting supplies of major apparel firms including Nike, Abercrombie & Fitch, and Adidas.

Crocs logo and symbol, meaning, history, PNG
Due to supply concerns, Nike has warned that there may be delays during the key holiday shopping season and that it will take many months to recover full production in Vietnam, where nearly half of its footwear is made.

Crocs, on the other hand, claimed that due to the simplicity of their shoes, they will be able to rapidly resume manufacturing. The business also stated that it was avoiding port delays in the United States. Switching from West coast to East coast docks.

It forecasts revenue to climb by 62 % to 65 % in fiscal 2021, up from a 60 % to 65 % increase in fiscal 2020.

According to, revenue for the third quarter ended Sept. 30 increased by 73 % to $625.9 million, exceeding analysts' average forecast of $610 million, as the company benefited from higher prices and fewer discounts.