K-Swiss Inc.’s second-quarter loss narrowed from a year ago, but was wider than expected.
For the period ended June 30, the Westlake Village, Calif.-based firm lost $11.6 million, or 33 cents a share, compared with a loss of $20 million, or 56 cents, the same period a year ago.
Revenues decreased 31.5 percent to $44.8 million, from $65.3 million.
Analysts were expecting a loss of 23 cents a share on revenue of $46.2 million, as polled by Yahoo Finance.
Steven Nichols, K-Swiss’ chairman and president, acknowledged the domestic business has suffered from declining futures orders and sales for several years. The focus for the rest of 2012, he said, is to reduce inventory and costs, as well as drive improved performance from our Palladium brand.
“We have been aggressively [rolling out] new product initiatives. While there was a positive impact from these initiatives in our backlog, it was not evident due to the declining trends in the overall domestic business,” Nichols said in a statement. “We are starting to see some overall positive results in our early domestic K-Swiss firs- quarter 2013 futures bookings.”
Domestic sales slipped 42.1 percent to $18.7 million, while international sales fell 20.9 percent to $26 million. Domestic futures orders decreased 41.8 percent to $21.5 million, and international futures orders slid 7.8 percent to $48.8 million.
For 2012, the firm expects full-year revenue to be between $215 million and $220 million. Cash stood at $41.4 million at the end of the period.