K-Swiss reports US$11.6 million net loss for Q2 2012

K-Swiss Inc has announced results for the second quarter ended 30 June 2012. The company’s net loss for the second quarter was US$11.6 million, or US$0.33 per diluted share, compared with a net loss of US$20 million for the prior-year period.

The net loss for the six months ended 30 June 2012 was US$18.3 million, compared with a net loss of US$29.9 million in the previous year period.

For the second quarter of 2012, total worldwide revenues decreased 31.5% to US$44.8 million. Domestic revenues decreased 42.1% and international revenues decreased 20.9% in the period.

Total worldwide revenues for the first six months of 2012 decreased 17.2% to $114 million. Domestic revenues decreased 37.9% in the first half of 2012, and international revenues increased 0.6% to $74.5 million.

Steven Nichols, Chairman of the Board and President, said “The past several years, domestic K-Swiss has suffered from declining future orders and sales. We have been aggressively addressing these trends with new product initiatives. While there was a positive impact from these initiatives in our June 30, 2012 backlog, it was not evident due to the declining trends in the overall domestic business.

“We are starting to see some overall positive results in our early domestic K-Swiss first quarter 2013 futures bookings. Additionally, we continue to execute on our focus initiatives for 2012, which are to reduce inventory and costs as well as drive improved performance from our Palladium brand.”

Founded more than 40 years ago in Van Nuys, California, K-Swiss has rooted itself in California sport with an aim to be the most inspiring and innovative sports brand in the market. Today the company offers performance and lifestyle footwear and apparel for several categories under its California Sports umbrella including Tennis Heritage, California Fit (Running, Triathlon and Fitness) and California Youth. K-Swiss also designs, develops and markets footwear under the Palladium brand.



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