K-Swiss Reports Increase Sales for 2005, Fourth Quarter Profits Fall

K-Swiss Inc. saw increased sales in 2005, but its fourth quarter earnings fell 26 percent because of a one-time tax benefit in fourth quarter 2004. The Westlake Village-based athletic footwear company reported net earnings of $11.6 million, or $0.33 cents per share on revenues of $92.3 million in the fourth quarter 2005, compared with earnings of $15.6 million, or $0.43 cents per share on revenues of $88.4 million in the previous year. For the full year 2005, the company reported earnings of $75.2 million, or $2.11 per share on revenues of $508.6 million, a jump from earnings of $71.3 million, or $1.96 per share on revenues of $484.1 million in 2004 2004’s fourth quarter results were influenced by a $3.5 million tax benefit after the earnings from a foreign subsidiary were converted to U.S dollars, explaining the decline for the same period in 2005. The company expects that domestic sales will fall in the second half of 2006.