Heelys, Inc. decreased its sales and earnings guidance for Q3 citing
increased ad spend, steps taken to reduce inventory in domestic
distribution channels, and the companys providing of “addition
markdown assistance.”
The company now expects net sales for the third quarter to decrease
32.4% to $49 million from $72.5 million in the year-ago quarter. This
estimate marks a decrease from earlier guidance ranging from $55
million to $58 million.
Earnings per diluted share are expected to be in the range of 22 cents
to 23 cents per share versus the prior expectation of 28 cents to 30
cents. The company will also open two new accounts, Famous Footwear and
Shoe Carnival with product on shelves in time for the holidays and a
broader rollout expected in 2008.
