Shares of Crocs Inc. soared Wednesday on news reports that the maker of colorful plastic clogs is considering becoming a private company.
THE SPARK: The Wall Street Journal reported Wednesday that Crocs is meeting with private equity firms about a possible buyout. The report cited sources it did not identify.
A Crocs representative did not respond to a request for comment from The Associated Press.
THE BIG PICTURE: The company, based in Niwot, Colo., has been struggling with slower sales of its signature clogs. Crocs is trying to expand, adding wedges and sandals, but the strategy has yet to take hold.
In its fiscal third quarter, the company said that its net income fell 71 percent because of higher costs and weaker sales in the U.S. and Japan.
SHARE ACTION: Up $1.24, or 9.8 percent, to close at $13.89 on Wednesday. Its shares had fallen 12 percent so far this year.