K-Swiss Inc. reported that its net loss in the second quarter increased to $20.0 million, or 56 cents a share, from $14.5 million, or 41 cents, a year ago. Revenues increased 40.0
percent to $65.5 million from $46.8 million.
Domestic revenues increased 43.5 percent to $32.6 million in the second
quarter, and international revenues increased 36.6 percent to
$33.0 million for the same period.
Net loss for the six months ended June 30, 2011, was $29.9 million, or 84 cents a share, compared with a net loss of $19.2 million, or 55 cents per share, for the six months ended June 30, 2010.
Total worldwide revenues for the first six months of 2011 increased 22.6 percent to $138.2 million from $112.7 million for the first six months of 2010. Domestic revenues increased 37.3 percent to $64.0 million in the first half of 2011, and international revenues increased 12.2 percent to $74.1 million.
Futures Orders
Worldwide futures orders with start ship dates from July through December 2011 increased 39.2 percent to $89,915,000 at June 30, 2011. Domestic futures orders increased 47.9 percent to $37.0 million at June 30, 2011, from $25.0 million the previous year. International futures orders increased 33.7 percent to $52.9 million at June 30, 2011, from $39.6 million the previous year.
Steven Nichols, chairman of the board and president, stated, “We are encouraged by what we see with increases in revenues and backlog and growth of our Performance category. The crucial selling season for K-Swiss and Palladium brands is starting shortly. That will reveal how our marketing efforts and products perform.”
2011 Guidance
For 2011, the company expects full year consolidated revenues to be 25
percent to 30 percent above 2010. Consolidated gross margin is expected
to be approximately 37.5 percent, compared to 39.2 percent in 2010.
Selling, general and administrative expenses are expected to be $155
million to $160 million due to continued support of the companys
marketing initiatives.
| KSwiss Inc. Consolidated Statements of Loss | ||||||||||||||||
(In thousands, except earnings per share data) |
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Three Months Ended |
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Six Months Ended | ||||||||||||
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June 30, |
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June 30, | ||||||||||||
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2011 |
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2010 |
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2011 |
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2010 | ||||||||
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(unaudited) |
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(unaudited) |
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Revenues |
|
$ | 65,542 |
|
|
$ |
46,831 |
|
|
$ | 138,162 |
|
|
$ |
112,701 |
|
Cost of goods sold |
|
43,035 |
|
29,305 |
|
87,129 |
|
66,529 |
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Gross profit |
|
|
22,507 |
|
|
|
17,526 |
|
|
|
51,033 |
|
|
|
46,172 |
|
Selling, general and administrative expenses |
|
|
39,830 |
|
|
|
32,980 |
|
|
|
80,613 |
|
|
|
68,303 |
|
Impairment on intangibles and goodwill |
|
3,689 |
|
– |
|
3,689 |
|
– |
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Operating loss |
|
|
(21,012 | ) |
|
|
(15,454 |
) |
|
|
(33,269 | ) |
|
|
(22,131 |
) |
Other income/(expense) |
|
|
– |
|
|
|
(3,320 |
) |
|
|
3,000 |
|
|
|
(3,320 |
) |
Interest income, net |
|
2,024 |
|
228 |
|
1,963 |
|
367 |
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Loss before income taxes |
|
|
(18,988 | ) |
|
|
(18,546 |
) |
|
|
(28,306 | ) |
|
|
(25,084 |
) |
Income tax expense/(benefit) |
|
1,038 |
|
(4,001 |
) |
|
1,562 |
|
(5,841 |
) |
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Net loss |
|
$ | (20,026 | ) |
|
$ |
(14,545 |
) |
|
$ | (29,868 | ) |
|
$ |
(19,243 |
) |
Basic loss per share |
|
$ | (0.56 | ) |
|
$ |
(0.41 |
) |
|
$ | (0.84 | ) |
|
$ |
(0.55 |
) |
Diluted loss per share |
|
$ | (0.56 | ) |
|
$ |
(0.41 |
) |
|
$ | (0.84 | ) |
|
$ |
(0.55 |
) |
Weighted average number of shares outstanding |
|
|
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|
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Basic |
|
|
35,475 |
|
|
|
35,186 |
|
|
|
35,433 |
|
|
|
35,164 |
|
Diluted |
|
|
35,475 |
|
|
|
35,186 |
|
|
|
35,433 |
|
|
|
35,164 |
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