K-Swiss Inc.’s decision to jettison a small, money-losing brand of slip-on sneakers is part of a broader turnaround strategy designed to end a year and a half of revenue declines.

The Westlake Village-based shoe manufacturer, perhaps best known for introducing the first all-leather sneaker in 1966, sold its Royal Elastics brand May 6 to an investment group headed by one of the company’s former designers. Terms of the deal were not disclosed. The transaction is expected to result in a gain of $1.4 million in the company’s second quarter, according to a statement from K-Swiss.

Royal Elastics specializes in laceless sneakers that have been selling to fashion-conscious females. The line had potential, but was a consistent money-loser for K-Swiss, costing the company about $1 million to $2.5 million a year, George Powlick, the company’s chief financial officer, told the Business Journal.

Powlick said K-Swiss never could devote the time and energy to make Royal Elastics a successful brand. The manufacturer sees more potential in Palladium, a French shoe brand K-Swiss acquired last year. The Palladium line features hiking boots and sneakers with heavy treads.

Jeffrey Van Sinderen, a senior analyst with B. Riley & Co. in West Los Angeles, said it made sense for K-Swiss to sell Royal Elastics if the goal is to reverse a steady streak of quarterly declines.

On May 7, K-Swiss reported that revenue fell 25 percent compared with the prior year. The company lost $1 million, compared with net income of $7.1 million.

“If K-Swiss had held on to Royal Elastics, it eventually would have become profitable for them,” Van Sinderen said. “But the question is: How long do you wait? And does it make sense to focus effort on that small brand when you have a larger business to turn around?”

Van Sinderen also noted that, despite declines in revenue, K-Swiss has about $200 million in cash. “That should keep them in business for a while,” he said.

Royal Elastics was purchased by REH, an investment group that was founded last month by John Bondock, a former K-Swiss designer.

Powlick said REH is based in Hong Kong.

Bondock, who no longer works for K-Swiss, could not be reached for comment.