Heelys, Inc. reported sales tumbled 73.5% for the first quarter of 2008, to $13.1 million from $49.4 million a year ago. The company reported a net loss for the quarter of $1 million, or 4 cents a share, compared to net income of $8.5 million, or 30 cents a share, a year ago. Excluding the costs associated with the transition to a new CEO, Heelys lost 2 cents a share.
The company also announced that it has entered into a termination agreement with Trotwood Import/Export and will take over direct distribution of Heelys in France and Monaco. Heeling Sports EMEA, Heelys European subsidiary will open a sales office based in Annecy, France in May.
Parks concluded, “Despite the difficult start to 2008 we believe we are moving in the right direction. Domestically, we remain focused on better aligning inventory with demand while overseas we have recently expanded our presence in Europe and begun implementing a direct sales model in select markets. We are confident that our strong brand equity combined with our unique and patent-protected product offering provides us growth opportunities well into the future.“