Shoemaker K-Swiss saw its third quarter profit shrink slightly, but an ambitious outlook for the fourth quarter sent shares surging more than 17 percent.
The Westlake Village shoemaker reported third-quarter net income $21 million (59 cents per share), slightly down $21.1 million (59 cents) for the same period a year earlier. Sales were off 3 percent to $133.1 million mainly due to a slowdown in domestic orders, which fell 21 percent.
However, the company's results were better than expected. Analysts polled by Thompson Financial expected earnings around 48 cents on sales of $125 million. The company's revised earnings estimate for the fourth quarter projected net income of 24 to 31 cents per share on revenue of $95 million.
Shares of K-Swiss were up $5.56 to $37.60 in early trading Thursday.
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