K-Swiss is to focus on running and triathlon in 2009, building on its activities this year. The company generated quarterly revenues of US$96 million in its fiscal third quarter 2008, significantly above its forecast levels. However, revenues were down 10.7% year on year and management reported a quarterly net loss of US$100,000 as the quarter to quarter average wholesale price for the K-Swiss brand decreased from US$27.93 to US$26.44. K-Swiss anticipates its Q4 loss per share to be in the range of 10 cents to 35 cents.
K-Swiss sales by product category for the third quarter of 2008 were Performance 11%, Sports Style 73% and other 16%. The performance revenues gained 4% when compared with the prior year period. The category includes all genders of tennis, running and training.
Sports marketing and showcasing its performance portfolio continues to be a strong focus for K-Swiss. The company has increased its activities within triathlon in recent years. In its Q3 earnings report, K-Swiss states that it ‘continues to be a brand that is a leader in the triathlon space.’
During the third quarter, the company’s athletes participated on the podium in several full and half Ironman, Olympic and sprint distances. K-Swiss sponsored the Malibu triathlon as well as the Ironman World Championship in Kona.
According to K-Swiss, the events helped cement commitment to the sport of triathlon and the company will launch a new 2009 running shoe, the K-ONA, which appeared in Kona in October this year.
In fiscal 2009, key initiatives include a focus on K-Swiss’ classic lifestyle brand. Meanwhile, tennis remains a core area of focus. (The tennis business in 2008 reportedly posted strong increases and is expected to continue to grow.). Finally, the company shall endeavour to establish the K-Swiss brand as a player in the running category.
In 2008 with the inroads in triathlon and placement in specialty running, K-Swiss made progress. Looking ahead to 2009, the company has a customized concept in running called My Sole Technology that it claims is ‘revolutionary’.
