K-Swiss has reported a second quarter 2011 loss despite a 40% uplift in revenues, and as the sporting goods business approaches its busiest selling summer season.
The US company reported that domestic revenues rose 43.5% to US$32.6 million in the three months to 30 June; while international sales rose 36.6% to US$33 million.
In the quarter, K-Swiss reported revenue of US$65.5 million. Yet, with high levels of sales and marketing expenditure, the company’s net loss in the quarter was US$20 million, or 56 cents a share. This compared to a net loss of US$14.6 million, or 41 cents a share, in the same period a year ago.
Worldwide futures orders for the July to December 2011 period were up 39.2% to US$89.9 million.
“We are encouraged by what we see with increases in revenues and backlog, and growth of our performance category,” said company Chairman and President Steven Nichols.
“The crucial selling season for K-Swiss and Palladium brands is starting shortly. That will reveal how our marketing efforts and products perform.”
K-Swiss is forecasting full-year 2011 revenues up 25% to 30%, with gross margin falling to 37.5%, down from 39.2% in 2010.
