Shoe company K-Swiss said first-quarter earnings and sales falls mirrored "negative trends" in its domestic business.

Quarterly earnings were down to US$24.9m from $25.9m a year ago, while revenues fell to $149.98m from $153.14m.

Domestic revenues spiralled 12.1% in the quarter, with a better result of a 31.1% increase internationally.

The company expects earnings per share of $0.43 to $0.51 for the second quarter, and revenues of about $125m to $135m.

In addition, it eyes full-year earnings per share of about $1.55 to $1.70 plus revenues of $460m to $480m.

K-Swiss said the forecasts reflect "the continued investments in marketing, sales and product development for the Royal Elastics brand as well as the expansion of European operations".

Chairman Steven Nichols said: "…the decline in domestic revenues and backlog more than offset the 31% increase in revenues and the 51% increase in the backlog we generated in our international business".

He added: "With current backlog trends signalling no immediate turnaround in domestic sales, reigniting the domestic business is our highest priority. We have been through two other domestic downturns in the past, and fully expect to draw on that experience to develop the appropriate plan of action to affect a domestic turnaround.

"Realistically, we do not expect this turnaround to happen until 2007 at the earliest. However, the timing of a recent retirement and a resignation among our senior marketing and product development team present the opportunity to add fresh product and marketing talent to our team at the right time."