K-Swiss Inc. reported sharply lower profits Tuesday as growth in its international business couldn't offset rising costs and sagging domestic sales.
The Westlake Village-based shoe and clothing retailer reported first quarter net income of $7.1 million (20 cents per share), down 61 percent from $18 million (51 cents) the same period a year earlier. The results were in line with analysts' expectations, according to Thomson Financial.
Sales dropped16 percent to $103 million, slightly beating Wall Street's estimates of $101 million.
Domestic sales declined 34 percent while international sales rose 2.1 percent, the company said. Selling, general and administrative costs rose 16 percent, forcing the company to trim its outlook as momentum in its international business slows.
K-Swiss said it now expects second-quarter earnings per share ranging from a loss of 5 cents to a profit of 5 cents on sales of $70 million to $80 million. Analysts saw earnings of 4 cents per share and sales of $80 million.
For full-year, K-Swiss expects profit between 5 cents and 25 cents per share on sales of $305 million to $330 million. That's down from a prior forecast and virtually all analysts' forecasts.
Shares in K-Swiss were down 6 percent to $14.65 in early trading Tuesday.
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