K-Swiss Falls as Forecasts Trail Analysts' Estimates
K-Swiss dropped $1.57, or 9.4 percent, to $15.15 as of 4 p.m. New York time in Nasdaq Stock Market trading for the biggest loss since Nov. 6.
The Westlake Village, California-based company forecast 2008 per-share earnings of 10 cents to 35 cents on sales of $310 million to $340 million. That missed the average 91-cent earnings estimate among three analysts surveyed by Bloomberg and the average $388.6 million sales estimate among five.
The 2008 forecasts reflect domestic revenue declines, investments in product development and marketing, international expansion and investment in the Royal Elastics brand, K-Swiss said in a statement today.
The company posted a 94 percent drop in fourth-quarter net income, to $596,000, or 2 cents a share, from $10.7 million, or 30 cents. Sales fell 17 percent to $78.2 million.
K-Swiss shares have fallen 16 percent this year.
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