Litigation costs widen Heelys Q2 loss

US: Litigation costs widen Heelys Q2 loss

Author: just-style.com | 14 August 2009

Q2 loss widens to $1.6m
Sales fall 32%
Litigation adds $3.6m to costs

Wheeled footwear maker Heelys Inc has widened its second quarter loss after being hit by lower sales and costs to settle a lawsuit.

The company said charges of $3.6m relating to its initial public offering in 2007 helped push it to a net loss of $1.6m or $0.06 per share, compared with a loss of $0.4m or $0.01 per share the year before.

Net sales for the three months to 30 June fell 31.9% to $12.4m from $18.2m in the prior year. Gross profit slipped to 28.9 from 23.0%.

"While things on a macro level seem to be stabilising, we believe that we must be more precise than ever in our inventory management and hyper aware of our retail partners' needs going forward," said CEO Tom Hansen.

Sectors: Finance, Footwear

Companies: Heelys