K-Swiss, which in January entered into an agreement to be acquired by E.Land World, narrowed its net loss in the fourth quarter, to $14.5 million, or 41 cents a share, from $25.2 million, or 71 cents, a year ago. Total worldwide revenues decreased 17.8 percent to $41.2 million compared with $50.2 million in the prior-year period.
Domestic revenues decreased 31.4 percent to $14.0 in the quarter while international revenues decreased 8.5 percent to $27.2 million for the same period. K-Swiss also owns the Palladium footwear brand.
Worldwide futures orders with start ship dates from January through June 2013 increased 4.6 percent to $76.5 million at Dec. 31. Domestic futures orders increased 1.3 percent to $22.2 million, international futures orders increased 6.0 percent to $54.3 million.
As reported, K-Swiss on Jan. 16 entered into a definitive agreement pursuant to which E.Land World will acquire all of the outstanding common stock of K-Swiss for $4.75 per share in cash, or a total equity value of approximately $170 million. The merger, which is expected to close during the second quarter of 2013, requires the approval of 80 percent of K-Swiss outstanding voting power and applicable regulatory approvals in addition to other customary closing conditions. The deal has been unanimously approved by K-Swiss board.
Established in 1980 in Korea, E.Land has become one of the largest South Korean conglomerates as well as the countrys largest integrated fashion and retail company.
According to its 10K filing, K-Swiss brand revenues decreased 23.9 percent to $171.1 million in 2012. The decrease was due to a 39.6 percent decline in domestic K-Swiss brand revenue, primarily as a result of a decrease in its performance footwear category by 41.4 percent due to a decrease in running product by 40.5 percent. The volume of footwear sold decreased 25.0 percent to 5.33 million pair in 2012 from 7.1 million pair in 2011. The average wholesale price per pair was $28.32 in 2012 and $27.78 in 2011.
Palladium brand revenues increased 18.8 percent to $51.8 million due to the increase in revenues in a majority of its selling regions as a result of continuing marketing and selling efforts of Palladium product in these regions beginning in the second half of 2009.
