Business news :K-Swiss's Losses, Sales and Future Orders Decline in Third Quarter

K-Swiss Inc. reported a net loss for the third quarter of 2012 was $1.93 million, or 5 cents per diluted share, compared with a net loss of $15.4 million, or 43 cents per diluted share, for the prior-year period. Net loss for the nine months ended Sept. 30, 2012, was $20.3 million, or 57 cents per diluted share, compared with a net loss of $45.3 million, or $1.28 per diluted share, for the nine months ended Sept. 30, 2011.

For the third quarter of 2012, total worldwide revenues decreased 16.0 percent to $67.6 million compared with $80.5 million in the prior-year period. Domestic revenues decreased 31.8 percentto $22.3 million in the third quarter, and international revenues decreased 5.3 percentto $45.3 million for the same period. Total worldwide revenues for the first nine months of 2012 decreased 16.8 percent to $181.6 million from $218.2 million for the first nine months of 2011. Domestic revenues decreased 35.8 percent to $61.9 million in the first nine months of 2012, and international revenues decreased 1.7 percentto $119.8 million.

Futures Orders
Worldwide futures orders with start ship dates from October 2012 through March 2013 decreased 8.6 percent to $70.0 million at Sept.  30, 2012, from $76.6 million the previous year. Domestic futures orders decreased 18.6 percent to $21.6 million at Sept.  30, 2012, from $26.5 million the previous year. International futures orders decreased 3.3 percent to $48.4 million at Sept.  30, 2012, from $50.1 million the previous year.

“The third quarter results benefitted from the positive contribution from our Palladium brand as well as disciplined expense and inventory controls,” said Steven Nichols, chairman of the board and president. “While we continue to gain momentum and demonstrate product innovation with the K-Swiss brand, we have yet to convert these efforts into a sustainable futures order trend.”

2012 Guidance
For 2012, the company is presently forecasting full year consolidated revenues to be approximately $221 million to $223 million. Consolidated gross margin is expected to be approximately 35 percent to 36 percent. Selling, general and administrative expenses are expected to be about $105 to $107 million.

( SportsOneSource Media )