Shares of Crocs shot higher Monday after the footwear maker announced an investment from Blackstone Group, a share repurchase plan and the departure of its CEO.
Crocs ( shares had been down 7% year to date through Friday's close, but shares were up 17% in morning trading on the news. )
The company said Blackstone ( will invest $200 million in convertible preferred shares, using most of those proceeds to help repurchase $350 million worth of its stock. It will use cash on hand to fund the rest of the repurchase program. )
At current prices, the repurchase program is large enough to reduce shares outstanding by about 30%, according to Crocs.
The company also announced that CEO John McCarvel, who has led the company since 2010, is leaving in April. Crocs, which termed the 57-year-old McCarvel's departure a retirement, said it has begun an outside search for his successor.
Crocs also warned that fourth-quarter revenue will be at the low end of its previously announced guidance, and that its loss will be closer to 23 cents a share rather than 20 cents a share it had forecast previously.