K-Swiss reported earnings plummeted in the second quarter of 2007 to $7.7 million or $0.22 per diluted share compared with earnings of $20.3 million or $0.58 per diluted share in the comparable period a year ago. Revenues for the second quarter decreased 17.5 percent to $102.5 million versus $124.2 million in the second quarter of 2006. Domestic revenues decreased 37.1 percent to $116.0 million in the first half of 2007 while international revenues increased 21.5 percent to $109 million. “The premium positioning we have been establishing for the K-Swiss brand in tennis and now free-running have generated excitement for us, but we are still battling the weaker trends in footwear in the United States and a flattening of our largest markets in Europe,” said Steven Nichols, chairman and president of K-Swiss. “Significant investments in all four areas of our business will remain the primary emphasis for at least the next 12 months as we seek to build on this premium brand repositioning to reignite the domestic business and develop growth opportunities in new European markets.”