Though it narrowed its fourth-quarter loss, K-Swiss Inc. reported Thursday a wider-than-expected loss on a 21 percent drop in revenues. Sales, however, easily beat consensus estimates.
For the three months ended Dec. 31, the Westlake Village, Calif.-based company reported a net loss of $12.5 million, or 36 cents a diluted share, compared with a loss of $13.7 million, or 39 cents, the prior year. Analysts on average had expected a loss of 31 cents in the most recent quarter.
Revenues declined to $42 million — ahead of Wall Street expectations for $36.3 million — from $53.5 million a year ago. Domestic revenues were down 32 percent at $18.1 million.
Future orders through June 2010 decreased nearly 13 percent, the firm said, with domestic backlogs down 7 percent and international down 16 percent.
Looking ahead, the company forecast 2010 revenues “to be comparable to 2009.” In the first quarter, K-Swiss anticipates a drop in sales.
“We continued to make progress in the quarter with managing overhead and inventories tightly, allocating resources to revitalize our brands and securing strategic sponsorships in tennis and running. As evidenced by our guidance for 2010, we will continue to invest in marketing, design, development and technologies to position the K-Swiss and Palladium brands for success in 2011,” Steven Nichols, chairman and president of K-Swiss, said in a written statement.
In full-year 2009, K-Swiss reported a net loss of $28 million, or 80 cents, compared with net income of $20.9 million, or 59 cents, the prior year. Revenues fell to $240.7 million, from $327.4 million in 2008.