Wheeled footwear company Heelys has posted second quarter net income up 204.9% to US$12.8m versus $4.2m a year ago.

The company said that net sales increased 140.3% to $74.3m versus $30.9m in Q2 last year.

Mike Staffaroni, president and CEO of Heelys said: "We experienced another strong quarter of domestic sales growth driven by demand for our spring / summer line combined with early deliveries of fall product. We also continued to witness growing demand in our international markets, namely Europe.

"Importantly, we were able to leverage our operating platform and translate a top-line increase of 140% into a 205% gain in net income while at the same time heightening our brand awareness through additional investments in marketing and advertising."

For the second quarter, gross profit was $26.3m, or 35.4% of net sales, compared to $10.7m, or 34.6% of net sales for 2006.

Total selling, general and administrative expenses for the second quarter of 2007 were $7.2m compared to $4.2m in the second quarter of last year.

For the third quarter of fiscal 2007, the company currently expects net sales to range from $55m to $58m.

The company also updated its full year outlook, noting that it is experiencing challenges at retail related primarily to an over-inventoried position of product at many of the company's domestic accounts which will have a significant adverse affect on its fourth quarter 2007 results. Based on these factors, the company now expects net sales and net income growth of 10%-15% in 2007 versus 2006.

Staffaroni added: "The first half of 2007 was filled with many important financial, operational, and strategic accomplishments that have enhanced our brand equity and strengthened our infrastructure in order to better support our future growth strategy. Our entire organisation is focused on successfully executing our business plan, which includes introducing new and innovative products in our core business, further penetrating the international marketplace, selectively increasing our domestic distribution, and developing additional footwear and non-footwear categories under the Heelys brand. We remain optimistic about the company's future long-term growth prospects and the opportunities that lie ahead."