US: Heelys posts Q3 net loss of US$1.1m

13 November 2009 | Source: just-style.com

Wheeled footwear firm Heelys has swung to a third quarter loss, as sales more than halved in the period.

The company reported a net loss of US$1.1m in the third quarter of the year, compared to income of $0.8m in Q3 2008.

Net sales for the third quarter of 2009 were $10.8m, compared to $23.8m in the corresponding period a year ago.

Selling, general and administrative expenses, excluding litigation settlements and related costs, were $3.6m compared to $6.6m in the same period last year.

Tom Hansen, chief executive officer of Heelys, said: "Like our retail partners, our business continues to be adversely impacted by the tough economy and the holiday season remains a major question mark.

"However, we have made significant reductions in inventory and continue to scrub every aspect of our business to find more operating efficiencies and reduce costs in every possible way. And we are working diligently to rebuild the brand and increase visibility as well as implementing several new product development initiatives."

Click here to view the company's full third quarter earnings statement.