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.
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.”
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 $155 million due to continued support of the company’s marketing initiatives. These expenditures will be continually evaluated and could change over time, including the possibility of even greater marketing expenditures depending on available branding opportunities.
|K-Swiss Inc. Consolidated Statements of Loss|
|(In thousands, except earnings per share data)|
|Three Months Ended|
|Cost of goods sold||44,094||37,224|
|Selling, general and administrative expenses||40,783||35,323|
|Interest (expense) income, net||(61||)||139|
|Loss before income taxes||(9,318||)||(6,538||)|
|Income tax expense (benefit)||524||(1,840||)|
|Basic loss per share||$||(0.28||)||$||(0.13||)|
|Diluted loss per share||$||(0.28||)||$||(0.13||)|
|Weighted average number of shares outstanding|