K-Swiss Inc. said Tuesday it had completed the sale of its Royal Elastics laceless fashion footwear brand to an investment group called REH, which is headed by the label’s Los Angeles-based product design director.

The sale includes the Westlake Village company’s worldwide rights to the Royal Elastics brand, certain existing inventory, and other selected assets. Terms of the sale were not disclosed, but the transaction is expected to result in a gain of $1.4 million (4 cents per share) in the company’s second quarter, the company said.

K-Swiss shares were down 13 cents, or 2 percent, to $10.48 in midday trading on the Nasdaq. The company is scheduled to report first quarter earnings on Thursday.