Wheeled footwear maker Heelys Inc, which on Wednesday (5 November) said it is exploring strategic options for the business, has seen its third quarter profit slump after sales more than halved.
For the three months to 30 September net income tumbled to $0.8m, or $0.03 per share, from $6.6m, or $0.24 per share a year earlier.
Net sales fell 52.3% to $23.8m from $49.9m. Gross profit was $7.9m, or 33.3% of net sales, compared to $15.9m, or 31.9% of net sales for the third quarter of 2007.
Total selling, general and administrative expenses rose to $6.8m, or 28.6% of net sales, from $6.3m, or 12.7% of net sales, last time.
Lisa Peterson, chief financial officer said: "In the third quarter of 2008 we have seen a return to more full-price selling at our retail partners, which helped our gross margins improve over the prior year period."
But Don Carroll, chief executive officer said the outlook for the holiday period is "uncertain."
He added: "We will closely monitor inventories and price points as well as our expenses and look to capitalise on at-once opportunities that maintain our brand equity and enhance our market position."
Heelys, which in August rejected a US$142.8m takeover bid by rival footwear firm Skechers, said earlier this week it has retained financial advisor Houlihan Lokey to help the firm evaluate strategic options to enhance shareholder value.
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