US: Sourcing delays impact Heelys Q1
- Q1 net loss of US$1.2m, unchanged
- Sales down 8.3% to $6.1m
- Hit by sourcing problems and Japanese earthquake
Footwear company Heelys failed to improve on last year’s first quarter net loss, impacted by a 6.1% fall in international sales and a 13.4% slump in domestic revenues.
The US business said the sales losses were primarily due to its takeover of distribution in Japan, plus the March earthquake and tsunami, as well as sales falls in France and Germany, offset by gains in Russia.
“Positive momentum from improved sell-through at retail during the holidays was countered by extreme delays in getting new product out of China and shipping to our retailers,” said Tom Hansen, Heelys CEO.
“Delays pushed some sales back and caused us to take a different direction in our sourcing operations.”
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Footwear company Heelys slid to a third quarter loss of $1.5m as sales slumped by nearly a fifth in the three months to 30 September....
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