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Crocs to run fewer holiday season promotions

The Crocs logo is seen at the company headquarters in Quebec City, July 25, 2008. REUTERS/Mathieu Belanger
The Crocs logo is seen at the company headquarters in Quebec City, July 25, 2008. REUTERS/Mathieu Belanger

By Aditi Shrivastava

(Reuters) - Crocs Inc , known for its namesake clogs, said it will offer fewer discounts during the all-important U.S. holiday season this year as the shoemaker focuses on promoting a new line of products.

"Last year we ran about 58 different type of promotions to different groups in our database ... this year it will be more like 20," Chief Executive John McCarvel told Reuters.

Crocs is planning to promote three collections this year in the United States and Europe -- fur-lined products, a boot collection geared for the rain, and a new retro line of clogs.

"(Promotions are) hard to manage, consumers get confused (and) think everything is on sale all the time, which isn't the case," McCarvel said.

"This year we will be focused on better programs that last a little bit longer."

However, rivals Wolverine Worldwide Inc and Skechers Inc have launched discounts to pull in frugal customers.

Crocs, most of whose products are made from a proprietary resin material with a rubber sole, is banking on new products like its retro line to boost sales during the holiday season and will sell the shoes at a slightly higher price. A majority of the company's products sell for between $25 and $50.

The company has been trying to reduce a pile-up of its clogs, which enjoyed huge patronage in the early 2000s, but whose popularity has since declined.

The Americas accounted for about 45 percent of Crocs's total revenue in its latest quarter, while Europe's share was 13 percent. Sales growth in Europe fell 2.9 percent in the quarter.

McCarvel said the company plans to focus on promoting its new products in the European markets, which buy more of its traditional clogs.

"We are trying to get the consumer in Europe to think about us differently," the 55-year-old CEO said.

(This story corrects paragraph 1 to remove word "rubber" and inserts phrase in paragraph 7 to show the clogs are made of a proprietary material with a rubber sole.)

(Reporting by Aditi Shrivastava and Siddharth Cavale in Bangalore; Editing by Sriraj Kalluvila)

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