K-Swiss Inc. on Thursday reported a wider-than-expected quarterly loss, as the athletic and casual shoemaker saw its overseas revenue fall by half. The company narrowed its outlook for the full year.
The Westlake Village company reported a net loss of $11.5 million (-33 cents a share), compared with a profit of $26.4 million (75 cents) a year earlier. Earnings in the same quarter a year ago included a tax gain of $30 million (52 cents) related to a litigation settlement.
Adjusting for one-time items, the loss was 30 cents a share, larger than the 23 cent loss average expected by analysts surveyed by Thomson Reuters.
The company's revenue, down 35 percent to $54 million, was better than the $47.5 million that Wall Street expected. Domestic revenue fell nearly 19 percent but international revenue dropped by nearly 47 percent.
"The environment at retail, as well as our brand's popularity, remain challenging and are evident in the continued year-over-year decline in sales, earnings and backlog," Chief Executive Steven Nichols said in a statement. "We are managing this environment with firm control of our administrative cost structure, but with an eye on the future."
The company now expects a 2009 loss of 70 cents to 90 cents a share, on revenue of about $215 million to $230 million. In a prior forecast, the company expected a loss of 60 cents to 90 cents a share, on revenue of about $200 million to $230 million.
Shares closed up 10 cents, or less than 1 percent, to $10.95 on the Nasdaq.
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