WeSC reported a decline in sales and profits for the six month period and third quarter ended January 2012.
The company, which is publicly traded in Sweden, has seen its stock hover at the low end of its 52-week price range of late.
WeSC said it has embarked on cost cutting and restructuring in the U.S., and is making its Swedish operation more efficient.
“We are obviously not satisfied with developments we have seen in recent quarters,” CEO Greger Hagelin said in a press release.
The company believes for the full year, which ends in April, it may show revenue growth as it has forward orders worth SEK 85 million ($12.4 million at current exchange rates) and believes it has opportunity for at-once orders in its fourth quarter.
WeSC has also been hurt by production delays that led to late deliveries of its new RZA headphone.
May 2011-January 2012
Net sales: fell 9.5% to SEK 291.2 million ($42.5 million at current exchange rates)
Operating profit: Turned negative to SEK -2.7 million vs. an operating profit of SEK 40.5 million the previous year.
Net profit after tax: The company reported a loss of SEK 4.2 million vs. a profit of SEK 29 million during the same period last year.
Third quarter – November 2011-January 2012
Net sales: fell 18% to SEK 90.5 million ($13.2 million at current exchange rates) compared with the same period last year.
Net profit after tax: turned to a loss of SEK 5.5 million vs. a profit of SEK 9.6 million in the third quarter last year.
Other developments
WeSC acquired a 49% stake in its Norwegian distributor and acquired 100% of its distributor in England.
The company said orders for spring and summer rose 13% in local currencies and 10% in SEK.
