K-Swiss struggles
29/04/2008
US athletic footwear brand K-Swiss has reported first-quarter earnings of $7.1 million, compared to a much higher figure, almost $18 million, for the same period last year.
Worldwide sales for the period were $102.9 million whereas in the first three months of 2007 the figure was $122.5 million.
Orders for the next few months are also down, by 46.8% in the US and by 2.8% outside the company's home market.
K-Swiss chairman, Steven Nichols, said on announcing the results: “We have worked hard to re-establish positive trends in our domestic business through premium sports branding initiatives and the support of such innovative sports as free running. The feedback we are receiving has been favourable, but we have much work to be done to prove ourselves to customers again.
“Unfortunately, based on initial indications in our futures orders, the long-term momentum we have enjoyed internationally appears to be coming to an end. As a result, we have trimmed our full year 2008 estimates to account for this development.”
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