Footwear maker K-Swiss Inc has swung to a second quarter loss on slumping sales of its sports fitness and casual wear lines.

"The environment at retail, as well as our brand's popularity, remain challenging and are evident in the continued year-over-year decline in sales, earnings and backlog," admitted chairman and president Steven Nichols.

Losses for the three months to 30 June were $11.50m, or $0.33 per diluted share, compared with earnings of $26.42m, or $0.75 per share, in the prior-year period.

Total worldwide revenues tumbled 34.8% to $54.03m from $82.89m last time, with domestic sales down 18.7% to $28.74m and international revenues falling 46.8% to $25,295,000.

Worldwide futures orders - a key indicator of future sales - with start ship dates from July through December 2009 were down 30.6% to $70.64m.

Domestic futures orders decreased 43.0% and international futures orders dropped 23.4%. Excluding the Palladium brand, the international backlog would have been down $41.0%, the company said.

Revenues at Palladium, the French shoe brand that was fully acquired by K-Swiss in June, were $2.09m with a net loss of $1.74m.

Looking ahead, K-Swiss said it expects full-year revenues to be $215m to $230m with a full-year loss of $0.70 to $0.90 per share.

This compares with earlier guidance for revenues of $200m and $230m and a loss of $0.60 to $0.90 per share.