Out-of-favour Heelys reports Q3 loss
15/11/2012
Although domestic sales increased $398,000, or 17.3%, during the three months to the end of September, international sales and gross profit decreased and it was badly hit by markdowns.
It reported a net loss of $2.4 million for the third quarter versus a net loss of $1.5 million in the third quarter last year.
The company closed its Belgium office in June and moved the vice-president of its international arm back to the US from Brussels.
Heelys has suffered from the slowdown in Europe as well as changing tastes, as the wheeled shoes fell out of fashion with children. Its value - once more than $1 billion - had faded to just over $50 million at the time of the sale to Evergreen. The private equity firm agreed a purchase price of $13.9 million in cash.
However, Evergreen says it will continue to operate the business. Its managing director, Jim Wagner, said: “We believe there is great potential in the Heelys brand and we see the company as a foundational company that we could add additional brands to the portfolio. Our current plan is to build the brand through product innovations, marketing and promotional partnerships.”
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