K-Swiss Widens Loss in Q4

Athletic apparel company K-Swiss Inc. widened its net loss for the fourth quarter and the 2010 fiscal year when compared to the same periods from a year ago. The Westlake Village-based firm reported a net loss of $20.6 million, or $058 per diluted share, on revenue of $42.6 million for the quarter ending Dec. 31. For the same period in 2009, the company had a net loss of $12.5 million, or $0.36 per diluted share, on revenues of $42 million. For the 2010 fiscal year, K-Swiss had a net loss of $68.2 million, or $1.94 per diluted share, on revenues of $217 million. For the 2009 fiscal year, the company had a net loss of $28 million, or $0.80 per diluted share, on revenues of $240.7 million. K-Swiss management used 2010 as a year in which to invest in and reposition its brand and to market its new Tubes and Blade lines to a youth customer base. Long known for its Classic, the white leather tennis show introduced in the 1960s, K-Swiss now offers running and training shoes to make up in sales what the tennis line can no longer bring in. The commitment to brand awareness at all costs is showing results in the positive swing in future orders, said company Chairman and President Steven Nichols. Worldwide futures orders to be shipped from January through June 2011 increased to $92.9 million from the same period a year earlier. Domestic orders increased to $45.2 million by Dec. 31 from $29.6 million from the previous year.