Footwear company Crocs has announced the retirement of president and chief executive John McCarvel, yet meanwhile, the company has received a $200m (£121m) cash injection from private equity firm Blackstone.
The company will put the money towards a $350m (£212.8m) share buyback. The repurchase will reduce the company’s publicly traded common stock float by 30%.
McCarvel will leave the company on April 30. He has been with Crocs since 2005 and had been president and chief executive since 2010. The company said it has begun an outside search for his replacement. McCarvel called the Blackstone investment “a vote of confidence in our company and our brand”.
Jeff Lasher, Crocs chief financial officer, said the changes will “reduce volatility” in both common stock price and shareholder base providing a “strong foundation to unlock long-term value for our shareholders”.
Following the investment, Blackstone will be entitled to two seats on the Crocs board of directors and will own 13% of the business.
Crocs chairman Thomas Smach said the transition will see “a sharper focus” on profit growth with less emphasis on top-line growth.
Crocs also said fourth-quarter revenue will be at the low end of the $220m (£133.8m) to $225m (£136.8m) it had predicted, and its quarterly loss will be at the worse end of the 20 cents to 23 cents per share it had predicted.
In November Crocs revealed a 2.4% drop, of $7.1m (£4.4m), in worldwide sales to for the three months to September 30, citing declines in Japan and the Americas. Gross profit also fell 4.6% to $153.6m (£95.4m). However the retail division across Europe experienced growth of 64.5% to £17m for the period.