K-Swiss reported that its losses swelled in the first quarter to $9.8 million, or 28 cents per share, from a loss of $4.7 million, or 13 cents, for the prior-year period. Revenues increased 10.2 percent to $72.6 million compared with $65.9 million a year ago.

Domestic revenues increased 31.4 percent to $31.5 million in the first quarter, and international revenues decreased 1.8 percent to $41.2  million for the same period.

Futures Orders

Worldwide futures orders with start ship dates from April through September 2011 increased 45.0 percent to $105.2
million at March 31, 2011. Domestic futures orders increased 62.0 percent to $47.2 million at March 31, 2011, from $29.1 million the previous year. International futures orders increased 33.6 percent to $58.0 million at March 31, 2011, from $43.4 million the previous year.

Steven Nichols, chairman and president, stated, “We are seeing the first fruits of 2010’s investments with sizable year-over-year increases in both our domestic and international futures orders and sequential improvement in revenues. The continued momentum at K-Swiss and the initial brand positioning success at Palladium are encouraging signs.”

2011 Guidance

For 2011, the company expects full year consolidated revenues to be 25 percent to 35 percent above 2010. Consolidated gross margin is expected to be approximately 39 percent, which is comparable to 2010. Selling, general and administrative expenses are expected to be $150 million to $155 million due to continued support of the company’s marketing initiatives. These expenditures will be continually evaluated and could change over time, including the possibility of even greater marketing expenditures depending on available branding opportunities.

 
 
K-Swiss Inc. Consolidated Statements of Loss
(In thousands, except earnings per share data)




 


Three Months Ended


March 31,


2011
2010




 
Revenues
$ 72,620

$ 65,870
Cost of goods sold
  44,094  
  37,224  
Gross profit

28,526


28,646
Selling, general and administrative expenses
  40,783  
  35,323  
Operating loss

(12,257 )

(6,677 )
Other income

3,000



Interest (expense) income, net
  (61 )
  139  
Loss before income taxes

(9,318 )

(6,538 )
Income tax expense (benefit)
  524  
  (1,840 )
Net loss
$ (9,842 )
$ (4,698 )
Basic loss per share
$ (0.28 )
$ (0.13 )
Diluted loss per share
$ (0.28 )
$ (0.13 )
Weighted average number of shares outstanding



Basic

35,391


35,142
Diluted

35,391


35,142