Crocs (NASDAQ: CROX) opened sharply higher Tuesday after the company said it fired 180 members of its staff and will shutter up to 100 of its retail stores.
The footwear company, which has about 5,000 employees, said the job cuts include 70 positions at its headquarters and will save $4 million in 2014 and $10 million in 2015. Store closings will reduce revenue by $35 million to $50 million and reduce expense by $17 to $25 million.
Crocs will eliminate non-core products and also boost advertising spending by 50 percent, funded mostly by lower costs for other forms of marketing.
The company obtained $200 million from Blackstone Group in December in exchange for a 13.5 percent stake and two seats on its board.
Crocs beat second-quarter exceptions late Monday by a small margin, posting second-quarter profit $19.7 million, down 44 percent, on revenue growth of 3.6 percent to $376.9.
Croc traded recently at $16.50, up more than 11.19 percent.
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