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Saturday, Jul 2, 2022

K-Swiss’ Quarter Disappoints

Shares of K-Swiss Inc. fell more than 10 percent Friday after the casual shoe maker reported a wider fourth quarter loss – despite better-than-expected revenue – and gave a cautious revenue forecast.

The Westlake Village company reported a net loss of $25.2 million (-71 cents a share), compared with a loss of $20.6 million (-58 cents) in the same period a year earlier. Revenue rose nearly 18 percent to $50.2 million.

Analysts surveyed by Thomson Reuters on average expected a loss of 42 cents a share on revenue of $41.4 million.

K-Swiss blamed the profit results on lower gross margins and a one-time charge, and warned that a more than 51 percent drop in future orders likely would hurt revenue this year. Gross margins fell from 34.4 percent to 25.6 percent.

The company expects to report revenue of $240 million to $250 million for this year, compared with the Wall Street consensus of nearly $270 mullion

“For the past four years, we have invested substantial resources in driving our performance running/Ironman Triathlon (products),” said Chairman Steven Nichols in a statement. “In addition to growing our performance category, our 2012 focus will be on bringing expenses and inventory in line with our historical positions and developing the franchise for the Clean Classic series.”

Shares closed down 40 cents, or 10.7 percent, to $3.35 on the Nasdaq.

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