K-Swiss Inc. has announced it has agreed with National Geographic to end their license agreement to develop and market a collection of National Geographic outdoor-oriented and casual footwear.
Steven Nichols, Chairman of the Board and President, stated, “National Geographic and K-Swiss have amicably agreed to dissolve their partnership for branded footwear. Although the initial reaction to the National Geographic line was well received by retailers and media, it turned out that attempting to implement this business strategy in the post-9/11 retail marketplace proved to be unfortunately timed. We wish National Geographic future success in all endeavors.”
The company had previously accrued $4.3 million for anticipated royalty payments otherwise payable to National Geographic through December 31, 2005. During the fourth quarter of 2003, the Company expects to reverse $2.3 million of this pre-tax accrual and close its National Geographic operations. As a result, the Company's financial results for the fourth quarter will include an after-tax benefit of approximately $0.03 per diluted share on a split-adjusted basis.
