Sports footwear maker K-Swiss Inc. (KSWS), Thursday reported a wider net loss for the fourth quarter, hurt by lower revenue amid difficult economic conditions. The company also provided revenue outlook for fiscal 2009, which came in below the analysts' expectations. Following the news, the company's stock dropped more than 18% in the trading hours.
Steven Nichols, Chairman of the Board and President said, "The fourth quarter results and our outlook for 2009 reflect the brutal realities and uncertainties of today's global retail environment."
The company posted a net loss for the fourth quarter of $13.7 million or $0.39 per share, compared to net earnings of $0.6 million or $0.02 per share in the prior year quarter. On average, 4 analysts polled by Thomson Reuters expected a loss of $0.22 per share for the fourth quarter. Analysts' estimate typically excludes special items.
Fourth quarter worldwide revenues declined 28.0% to $56.28 million from $78.17 million in the same quarter of last year. Three analysts had a consensus revenue estimate of $54.75 million for the fourth quarter.
Domestic revenues decreased 20.4% to $27.31 million in the fourth quarter, and international revenues fell 34.0% to $28.97 million.
In addition, K-Swiss said that its board has elected to suspend the company's dividend for the foreseeable future to preserve liquidity and enhance the strength of its balance sheet. The company expects to save about $7 million annually from the suspension of dividend.
For the full year 2008, the company reported net earnings of $20.9 million or $0.59 per share, compared to $39.1 million or $1.10 per share in the previous year.
Total worldwide revenues decreased 17.1% to $340.16 million from $410.43 million in the preceding year.
Analysts expected the company to report earnings of $0.06 per share on revenue of $339.04 million for the year.
For the full year 2009, the company anticipates a loss of $0.30 to $0.60 per share, and revenues of $210 million to $250 million. Street expects a loss of $0.34 per share on revenue of $294.39 million for 2009.
KSWS is currently trading at $7.50, down $1.73 or 18.74%.
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