Press Release:
WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE)– K•Swiss Inc. (NASDAQ:KSWS – News) today announced results for the first quarter ended March 31, 2011.
Financial Results
Net loss for the first quarter of 2011 was $9,842,000, or $0.28 per diluted share, compared with a net loss of $4,698,000, or $0.13 per diluted share, for the prior-year period.
For the first quarter of 2011, total worldwide revenues increased 10.2% to $72,620,000 compared with $65,870,000 in the prior-year period. Domestic revenues increased 31.4% to $31,459,000 in the first quarter, and international revenues decreased 1.8% to $41,161,000 for the same period.
Futures Orders
Worldwide futures orders with start ship dates from April through September 2011 increased 45.0% to $105,156,000 at March 31, 2011. Domestic futures orders increased 62.0% to $47,164,000 at March 31, 2011, from $29,115,000 the previous year. International futures orders increased 33.6% to $57,992,000 at March 31, 2011, from $43,414,000 the previous year.
Steven Nichols, Chairman of the Board and President, stated, “We are seeing the first fruits of 2010’s investments with sizable year-over-year increases in both our domestic and international futures orders and sequential improvement in revenues. The continued momentum at K•Swiss and the initial brand positioning success at Palladium are encouraging signs.”
2011 Guidance
For 2011, the Company expects full year consolidated revenues to be 25% to 35% above 2010. Consolidated gross margin is expected to be approximately 39%, which is comparable to 2010. Selling, general and administrative expenses are expected to be $150 million to $155 million due to continued support of the Company’s marketing initiatives. These expenditures will be continually evaluated and could change over time, including the possibility of even greater marketing expenditures depending on available branding opportunities.
About K•Swiss
Founded more than forty years ago in Van Nuys, California, K•Swiss introduced the first all-leather tennis shoe, the K•Swiss “Classic” in 1966. Since its inception, 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 and owns the FORM Athletics brand. For more information about K•Swiss, visit www.kswiss.com.
