K-Swiss struggles through Q1
Athletic footwear producer K-Swiss Inc. has reported a 16% revenue decline for its first quarter ended March 31. Revenues were $102.9 million compared with $122.6 million in the prior-year period. However, while domestic revenues fell 33.6% to $41.4 million in the first quarter, international revenues increased 2.1% to $61.5 million. Net earnings for the first quarter were $7.1 million compared with $18 million in the prior-year quarter.
The company's estimates for the second quarter of 2008 and full-year 2008 reflect a significant decline in domestic revenues; substantial investments in product development and marketing for the K-Swiss brand. It predicts a slowdown of international operations and continued investment in the Royal Elastics brand.
President and chairman of the board, Steven Nichols, said: "We have worked hard to re-establish positive trends in our domestic business through premium sports branding initiatives and the support of such innovative sports as free running. The feedback we are receiving has been favourable, but we have much work to be done to prove ourselves to customers again.
"Unfortunately, based on initial indications in our futures orders, the long-term momentum we have enjoyed internationally appears to be coming to an end."
