Shares in K-Swiss Inc. tanked early Tuesday after the shoe retailer posted a 94 percent drop in fourth quarter profit and warned investors that first quarter sales were expected to decline as well.
K-Swiss reported fourth quarter net income of $596,000 (2 cents per share), down from $10.7 million (30 cents) in the same period a year earlier. Analysts were expecting earnings of 4 cents a share, according to Thomson Financial.
Sales for the Westlake Village-based athletic shoe company also fell 17 percent to $78.2 million, due to a 35 percent drop in domestic sales. International sales however, rose more than 6 percent to $43.9 million. Sales beat Wall Street's estimates of $77 million.
The bad news got worse as the company added that it expects earnings of about 18 cents to 28 cents a share on revenue of $95 million to $105 million for the first quarter well short of analysts' expectations of 30 cents per share profit on sales of $105 million.
Shares in K-Swiss were down 9.2 percent to $15.19 in early trading Tuesday on the Nasdaq. Shares have shed more than 40 percent over the past year.
For reprint and licensing requests for this article, CLICK HERE.