logo
Share SHARE
FONT-SIZE Plus   Neg

Crocs CEO John McCarvel To Retire; Reports Financial Partnership With Blackstone

Crocs, Inc. (CROX) announced the financial partnership with Blackstone (BX). Crocs also revealed that John McCarvel planned to retire as president, chief executive officer and board member on or about April 30, 2014. The company said that the board has begun an outside search for McCarvel's replacement.

The company said that an investment fund affiliated with Blackstone has agreed to buy $200 million of newly issued series A convertible preferred stock.

In connection with the investment, Crocs intends to revise its capital structure to accommodate a $350 million stock repurchase program approved by its board of directors. Consummation of the investment is expected to close in January 2014.

Crocs also updated its fourth quarter 2013 outlook and currently expects revenue to be at the low end of prior guidance range of $220 million and $225 million, and loss per share to be at the low end (meaning the higher loss) of the previously provided guidance range of $0.20 and $0.23.

On average, nine analysts polled by Thomson Reuters expected the company to report revenues of $222.25 million for the fourth quarter. Analysts' estimates typically exclude special items.

Excluded from this outlook are all costs and expenses associated with the Blackstone transaction. The company expects the aggregate charges in the fourth quarter to be in a range of $47 million to $52 million, which is an additional loss per diluted share of $0.45 to $0.50.

"As we look forward, 2014 will be a significant transition period for the company. We will recruit a new CEO who will work with the reconstituted board to refine our short-term and long-term strategic plans, which will include a sharper focus on earnings growth with less emphasis on top-line growth. We will focus on improving financial performance, particularly in the Americas and Japan, as well as enhancing our global retail execution", said Thomas J. Smach, Crocs chairman of the board.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Tesla Motors Inc. (TSLA) has launched a new referral program for owners and new buyers of its Model S, as the electric car maker aims to boost sales with the latest marketing strategy. Tesla's referral program offers new buyers a discount of $1,000 if they order a new Model S using the referral link... Marriott reported a 25 percent jump in quarterly profit, topping analysts' estimates, as customers flocked to its hotel properties, driving up occupancy and room rates. The hotel chain provided weak earnings outlook for the current quarter, but lifted its expectations for 2015... Social networking giant Facebook, Inc. said Wednesday after the markets closed that its second quarter profit fell 9% from last year, as higher costs and expenses more than offset a 39% increase in revenue. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue.
comments powered by Disqus
RELATED NEWS
Trade CROX now with 
Follow RTT