K-Swiss, which has been significantly raising its profile in the world of multisport, has seen its losses widen for the first quarter ended 31 March 2011. The accumulated losses were due to higher expenses. The company’s bottom line was impacted despite a double-digit gain in revenue during the period.
The net loss for the first quarter of 2011 was US$9.84 million. This compares with a net loss of US$4.7 million in the first quarter of 2010. Selling, general and administrative expenses were US$40.8 million in Q1 2011, compared with US$35.3 million in the same period last year.
Total global revenue increased 10.2% to US$72.6 million in Q1 2011, compared with US$65.9 million in the prior-year period. Domestic revenues increased 31.4%, but international revenues decreased 1.8% during the period.
K-Swiss’ order book does however paint a more promising picture. Worldwide futures orders scheduled for shipment from April through to September 2011 increased by 45% to reach US$105.2 million as at 31 March 2011.
Domestic futures orders increased 62%, reaffirming the importance of the domestic US market to K-Swiss. Meanwhile, offsetting a poorer performance for international revenues in Q1 2011, international futures orders were up 33.6% as at the end of the quarter.
“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,” said Steven Nichols, company Chairman and President.
The company expects full year 2011 revenues to rise by 25% to 35%, with selling, general and administrative expenses to be around US$150 million to US$155 million to support its marketing initiatives.
