Shares of K-Swiss Inc. sank nearly 23 percent Thursday morning after the athletic footwear maker reported a wider-than-expected second-quarter loss despite higher revenue. It lowered its guidance for the year.
The Westlake Village company reported a net loss of $20 million (-56 cents per share), compared with a loss of $15.5 million (-41 cents) in the same period a year earlier. The results included $3.6 million in write-downs. The year-earlier quarter included a $4 million tax benefit. The gross margin fell from 37.4 percent to 34.3 percent.
Revenue for the maker of K-Swiss, Palladium and California Fit shoes jumped 40 percent to $65.5 million.
Analysts surveyed by Thomson Reuters on average expected a per-share loss of 30 cents on revenue of $62.2 million.
“We are encouraged by what we see with increases in revenues and backlog and growth of our Performance category,” Chairman Steven Nichols said in a statement. “The crucial selling season for K-Swiss and Palladium brands is starting shortly. That will reveal how our marketing efforts and products perform.”
Even so, the company reduced the high end of its full-year revenue guidance by 5 percent and now expects growth of 25 to 30 percent. The gross margin is expected to be about 37.5 percent, compared with 39.2 percent last year.
Shares closed down $2.62, or 25.6 percent, to $7.61 on the Nasdaq.
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