Editor’s note: Revenues, earnings and guidance came in less than consensus estimates
Press Release:
WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE)– K•Swiss Inc. (NASDAQ:KSWS – News) today announced results for the third quarter ended September 30, 2011. The operations of FORM Athletics are accounted for as a discontinued operation in the Company’s financial results and are excluded from futures orders data for the prior-year periods.
Financial Results
Net loss for the third quarter of 2011 was $15,418,000, or $0.43 per diluted share, compared with a net loss of $28,334,000, or $0.80 per diluted share, for the prior-year period. Net loss for the nine months ended September 30, 2011, was $45,286,000, or $1.28 per diluted share, compared with a net loss of $47,577,000, or $1.35 per diluted share, for the nine months ended September 30, 2010.
For the third quarter of 2011, total worldwide revenues increased 30.8% to $80,456,000 from $61,491,000 in the prior-year period. Domestic revenues increased 21.0% to $32,676,000 in the third quarter, and international revenues increased 38.6% to $47,780,000 for the same period. Total worldwide revenues for the first nine months of 2011 increased 25.3% to $218,194,000 from $174,192,000 for the first nine months of 2010. Domestic revenues increased 30.8% to $96,360,000 in the first nine months, and international revenues increased 21.2% to $121,834,000.
Futures Orders
Worldwide futures orders with start ship dates from October 2011 through March 2012 decreased 4.2% to $76,598,000 at September 30, 2011. Domestic futures orders decreased 24.1% to $26,494,000 at September 30, 2011, from $34,894,000 the previous year. International futures orders increased 11.3% to $50,104,000 at September 30, 2011, from $45,021,000 the previous year.
Steven Nichols, Chairman of the Board and President, stated, “Our performance category and international operations continue to strengthen, but our domestic business, in total, needs more work to restore us to profitability.”
2011 Guidance
For 2011, the Company expects full year consolidated revenues to be approximately $260 million. Consolidated gross margin is expected to be approximately 36.5%, compared to 39.2% in 2010. Selling, general and administrative expenses are expected to be $153 million to $155 million.
Investor Conference Call and Web Simulcast
K•Swiss will conduct a conference call on its third quarter 2011 results today, at 11:00 a.m. ET. The number to call for this interactive teleconference is (212) 231-2928. A replay of this conference call will be available until November 10, 2011, by dialing (402) 977-9140 and entering the passcode, 21542237.
The Company will also provide an online Web simulcast and rebroadcast of this conference call. The live broadcast of K•Swiss’ quarterly conference call will be available online at www.streetevents.com and www.earnings.com today, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue through November 10, 2011.
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. For more information about K•Swiss, visit www.kswiss.com.
