Athletic footwear company K-Swiss announced second quarter net earnings increased significantly from the previous year thanks to $30 million it received from the settlement of a lawsuit. While net earnings for the quarter were $26 million, or $0.75 per diluted share, compared with $7.7 million, or $0.22 per diluted share, in the prior-year period, the company saw its total worldwide revenues drop 17 percent from the previous year. Domestic revenues are down 33 percent in the quarter versus an increase of 0.5 percent earned internationally. Steven Nichols, chairman of the Westlake Village-based company, was fairly blunt in his earnings statement, writing ” we are increasingly less optimistic about the likelihood of a favorable retail climate in the near term.” The company intends to continue investing in its edgier Royal Elastics brand and pouring more money into product development and marketing its main K-Swiss brand products.
Litigation Settlement Raises K-Swiss Earnings