K-Swiss Inc, the Westlake Village footwear company, reported a wider loss in its fourth quarter along with a weak forecast for the current year.
For the full year ended Dec. 31, losses widened to $70.5 million from a loss of $68.2 million in 2010, even as worldwide revenues increased 24 percent to $268.4 million from $216.8 million.
K-Swiss said performance footwear—made up of athletic shoes—grew 72 percent, while the lifestyle division, made up of tennis and walking shoes—struggled, declining 15 percent.
The company attributed some of the loss to the acquisition of FORM Athletics, which it bought in 2010, and then discontinued in 2011.
While the company has spent several years investing in the performance sector, it is shifting focus to its roots in the lifestyle category this year, said CEO Steven Nichols. This year, the company will debut the “Clean Classic” product line, a new modern version of its “Classic” tennis shoe.
“In addition to growing our performance category, our 2012 focus will be on bringing expenses and inventory in line with our historical positions and developing the franchise for the Clean Classic series,” Nichols said.
The New Year has been off to a rocky start for K-Swiss. Worldwide orders scheduled to be shipped for the first half of the year decreased by 21 percent to $73.1 million from $92.9 million the year prior.
The company is forecasting 2012 revenues to be approximately $240 million to $250 million, well below analysts’ expectations of $269.8 million.