K-Swiss Posts Q4 Decline

K-Swiss Posts Q4 Decline
A K-Swiss Clean Classic style for fall '12

K-Swiss Inc.’s losses widened during the fourth quarter as futures orders shrank.
 
For the quarter ended Dec. 31, the company posted a net loss of $25.2 million, or 71 cents per diluted share, compared with a net loss of $20.6 million or 58 cents for the year-ago period. Sales during the quarter increased 17.8 percent to $50.2 million, from $42.6 million in the fourth quarter of 2010.
 
Analysts polled by Yahoo Finance had expected a loss of 42 cents a share on sales of $41.4 million.
 
Futures orders for January through June declined 21.3 percent to $73.1 million, down from $92.9 million the previous year. Domestic futures orders decreased 51.6 percent to $21.9 million, from $45.2 million a year ago. Meanwhile, international futures orders increased 7.5 percent to $51.3 million, up from $47.7 million the previous year.
 
The company closed out the year with a net loss of $70.5 million, or $1.98 a share, versus a loss of $68.2 million, or $1.94, for 2010. Revenues for the year increased 23.8 percent to $268.4 million, up from $216.8 million a year ago.
 
For his part, K-Swiss Chairman and President Steven Nichols said in statement that more cost controls will be put in place in the coming year to shore up losses. “In addition to growing our performance category, our 2012 focus will be on bringing expenses and inventory in line with our historical positions and developing the franchise for the Clean Classics series,” he said.
 
The Clean Classics product line is a new introduction for fall that features the classic silhouette in a variety of colors, without the signature K-Swiss stripes.
 
Looking at 2012, the company said it expected full-year revenues to hit $240 million to $250 million.

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