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Friday, Jul 19, 2024

K-Swiss Suspends Dividend, Reports Loss

K-Swiss (NASDAQ: KSWS) reported a $13.7 million net loss in the fourth quarter of 2008 and said that it would be suspending its common stock dividend “for the foreseeable future.” The Westlake Village-based company said the dividend suspension could save approximately $7 million a year in capital. Officials also said they would change their stock guidance practices, giving guidance annually rather than quarterly. Year-end net earnings for 2008 were $20.9 million, or $0.59 per diluted share, as compared with $39.1 million, or $1.10 per diluted share in the previous 12 months. K-Swiss has seen declining revenues in the U.S.. for some time, relying in part on international sales to bolster the bottom line. But in the last quarter of 2008, total worldwide revenues decreased 28 percent, to $56.3 million, from the prior-year period. Share prices were down in early trading after the announcement, sinking below the previously set 52-week low of $8.82.

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