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Thursday, Sep 28, 2023

Shoe Company Reports Net Loss in Q4

K-Swiss Inc. reported its fourth quarter earnings today, which included a net loss exceeding Wall Street estimates. The Westlake Village footwear company reported a net loss of more than $14.5 million (41 cents a share) for the quarter ended Dec. 31 compared to $25.2 million (71 cents) for the same period a year earlier. Analysts projected a loss of 28 cents a share, according to Thomson Financial. For the quarter, domestic revenues decreased 31.4 percent to $14 million. In addition, worldwide revenues for the company decreased 17.8 percent to $41.2 million compared with $50.2 million in the prior-year period. Last year, domestic revenues decreased 35 percent to $75.9 million. Total worldwide revenues for the year decreased 17 percent to $222.9 million from $268.4 million for 2011. The company reported a net loss of almost $35 million (98 cents a share) for the year. It reported a loss of more than $70 million ($1.98) the previous year. These earnings come more than two weeks after company was scheduled to report. In January, the board of directors unanimously approved the sale of the company to South Korean retail conglomerate E. Land World Ltd. for $170 million in a cash-for-stock deal. Investors are being offered $4.75 for every share they own. The merger is expected to close during the second quarter of 2013. Shares of K-Swiss were down 3 cents, or less than one percent, to $4.71 in midday trading on the Nasdaq.

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