Crocs shares spike on Blackstone investment

December 30, 2013: 11:32 AM ET
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NEW YORK (CNNMoney)

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 (CROX) 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 (BX) 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.

Related: Blackstone responds to Jon Stewart

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.

The new guidance doesn't include restructuring charges in the quarter. Crocs also said it expects it will have charges in 2014 as well.

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