Shares of K-Swiss Inc. fell early Friday after the athletic shoe maker said that despite higher revenue, its first-quarter loss widened because of higher expenses.
The Westlake Village company on Friday reported a net loss of $9.8 million (-28 cents per share), compared with a loss of $4.7 million (-13 cents) a year earlier. Revenue rose 10 percent to $72.6 million, with U.S sales up 31 percent. Selling, general and administrative expenses rose more than 15 percent to $40.8 million.
Analysts surveyed by FactSet on average expected a per-share loss of 20 cents on revenue of $77.3 million.
The company said orders were up 62 percent in the U.S. and 34 percent internationally. It expects full-year revenue will increase 25 to 35 percent, or between $300 million and $325 million. The Wall Street consensus was for revenue of $281 million.
“We are seeing the first fruits of 2010’s investments, with sizable year-over-year increases in both our domestic and international futures orders and sequential improvement in revenues,” Chairman Steven Nichols said in a statement.
Shares were down 77 cents, or 6.6 percent, to $10.95 in midday trading on the Nasdaq.
For reprint and licensing requests for this article, CLICK HERE.