K-Swiss 2007 Forecast Misses Estimates; Shares Fall
Revenue will be $420 million to $460 million in 2007, compared with $501 million for 2006, the Westlake Village, California-based company said in a statement.
U.S. sales will drop by 30 percent during the year, the company said. Futures orders for the year are already down. Worldwide orders for January through June 2007 dropped 23 percent to $168.9 million from $217.9 million for the comparable period a year earlier, and U.S. future orders fell 44 percent to $84 million. K-Swiss also is facing higher marketing and product development costs.
The company's marketing this year will focus on the shoes' tennis heritage, Chairman and President Steven Nichols said in a statement. K-Swiss today hired tennis professional Anna Kournikova as a spokeswoman.
A message left with the company's investor relations department wasn't returned.
K-Swiss had been expected to earn $2.11 a share this year, the average estimate of three analysts surveyed by Bloomberg.
In the fourth quarter of 2006, K-Swiss's net income fell 7.7 percent to $10.7 million, or 30 cents a share, from $11.6 million, or 33 cents, in the comparable period a year earlier.
K-Swiss shares fell $4.06 to $29.43 as of 4 p.m. New York time in Nasdaq Stock Market composite trading of 3.15 million, almost 14 times the three-month daily average. The stock is up 1.7 percent in the past 12 months.
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