Athletic footwear maker K-Swiss Inc today (26 April) posted a 27.8% slump in first quarter profit as its domestic sales and future orders continue to decline.

Net earnings for the three months ended 31 March were $18.9m, or $0.51 per diluted share, compared with $24.9m, or $0.70 per diluted share, in the prior-year period.

Total worldwide revenues fell 18.3% to $1226m, compared with $150.0m in the prior-year period. Domestic revenues dropped 39.7% to $62.4m, and international revenues increased 29.2% to $60.2m.

Worldwide futures orders with start ship dates from April through September decreased 19.8% to $172.2m at 31 March, compared with $214.7m on the same date in 2006.

Domestic futures orders fell 37.9% to $88.7m, from $142.8m last year. International futures orders rose 16.0% to $835m, from $72.0m.

Steven Nichols, chairman of the board and president, said: "We will remain patient in letting our new team have an impact in apparel, product development, international operations and marketing.

"We will also continue to rely on our strong cash position to make the necessary yet financially responsible investments to bring the K-Swiss brand back and build on our successes internationally."

During the quarter the company signed tennis star Anna Kournikova as its new spokesperson.
Looking ahead, K-Swiss expects profits and revenues to continue to fall during the remainder of the year. Revenues for the second quarter are likely to be $87-97m and earnings per diluted share in the range of $0.12 to $0.22.

The company forecasts full-year revenues of $415-440m and full-year earnings per diluted share of around $1.20 to $1.35.