Litigation cash helps K-Swiss
31/07/2008
The chief executive of sports footwear brand K-Swiss, Steven Nichols, has said he holds little optimism for an immediate improvement in the retail mood of the US, but said, on reporting his company's second-quarter results, that K-Swiss had a strong balance sheet, thanks in no small part to cash from a litigation settlement.
Collective Brands was ordered to pay the company $30 million at the end of June for trademark infringement.
Revenues for the second quarter decreased worldwide by 16.9% to $85.1 million. In the US, the decrease was 32.7% to $36.1 million.
But the money from the legal settlement allowed the company to post earnings of $26.4 million for the quarter, compared to $7.6 million for the same quarter last year.
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