K-Swiss Inc. narrowed its first-quarter loss, but still performed worse than expected, sending its shares down 7 percent in Thursday morning trading.
The Westlake Village, Calif.-based firm lost $6.7 million, or 19 cents a share. That was down from a loss of $9.8 million, or 28 cents a share, a year ago. Analysts were expecting to see a loss of 13 cents a share on revenue of $68.6 million.
Net revenue slipped 4.3 percent to $69.3 million year over year. While international sales advanced 17.8 percent, domestic revenues slid 33.5 percent.
Worldwide futures orders also dropped 32 percent to $71.5 million, mainly dragged down by domestic futures, which plunged 54 percent. International backlog slumped 14 percent.
“We have much work to do in reversing our overall backlog trend and the domestic business,” said Steven Nichols, K-Swiss’ chairman and CEO, in a statement.
“Our focus initiatives for 2012 are addressing these trends with the launch of Clean Classics later in the year along with the appropriate marketing support. I’m pleased with the continued improvement with Palladium, as well as the new distributor agreement in Korea that should provide for a total of six new stores in relatively short order,” he added.
For fiscal 2012, the company expects revenues to come in between $225 million and $240 million.