K-Swiss shares tumble on higher Q4 loss
Athletic shoe company K-Swiss stumbled into another unprofitable quarter, reporting a $25.2 million loss that came to 71 cents per share, despite higher sales. Shares of K-Swiss dropped 10.7 percent to $3.35 on Feb. 17 after the earnings announcement.
In the fourth quarter of 2010, the Westlake Village-based firm had reported a $20.6 million, or 58 cent per-share, loss.
Its total worldwide revenue was up 17.8 percent to $50.2 million in the fourth quarter of 2011 compared to a year earlier, with domestic sales up 10.3 percent to $20.4 million. International sales soared 23.6 percent to $29.7 million.
But the company’s cost of goods sold rose 29.6 percent percent to $37.3 million in the fourth quarter.
K-Swiss has been struggling for years to revive it brand beyond the classic white tennis shoe for which it is best known. Attempts to break into other markets — it bought an action-sports apparel company in 2010 and abandoned the business a year later — have largely flopped, racking up higher administrative and marketing costs and new debts along the way.
The company has now said it’s focused on trying to further grow in the running and triathlon markets.
“In addition to growing our performance category, our 2012 focus will be on bringing expenses and inventory in line with our historical positions and developing the franchise for the Clean Classic series,” K-Swiss Chairman and President Steven Nichols said in an earnings statement.
The firm said it expects 2012 revenue of between $240 million and $250 million, lower than its 2011 revenue of $268.4 million.