Shoe maker K-Swiss Inc said Thursday it swung to a loss in the fourth quarter. The loss was worse than Wall Street expectations, though the drop in sales was less than expected. It also said a 36 percent drop in advance orders portends a weaker 2009.
The Westlake Village maker of athletic and casual wear shoes reported a net loss of $13.7 million (39 cents per share), compared with net income of $596,000 (2 cents) a year ago. Revenue fell 28 percent to $56.3 million. Analysts surveyed by Thomson Reuters expected a loss of 22 cents per share on revenue of $54.8 million.
Full year net income fell 47 percent to $20.9 million (59 cents), as revenue fell 17 percent to more than $340 million.
The company is suspending its dividend and expects a loss in 2009 of 30 cents to 60 cents per share on revenue of between $210 million to $250 million. Analysts expect an average loss of 34 cents per share on sales of around $292 million.
"The fourth quarter results and our outlook for 2009 reflect the brutal realities and uncertainties of today's global retail environment," said Chairman Steven Nichols in a statement.
K-Swiss shares were down $1.92, or 21 percent, to $7.31 in morning trading on the Nasdaq.
For reprint and licensing requests for this article, CLICK HERE.