• Swings to Q2 loss of $973,000
  • Revenues fell 5.7% to $8.3m
  • Hit by 15% fall in international sales 

Footwear company Heelys Inc has swung to a second quarter loss after a 22.7% rise in domestic revenues was offset by a 15% fall in international sales.

The US business said the sales losses were primarily due to a drop in consumer spending in Japan triggered by the earthquake and tsunami earlier this year, as well as sales falls in France and Germany, offset by gains in Russia.

"We continue to see positive momentum in the US with both sell thru's and door counts improving nicely," said CEO Tom Hansen. "If we keep adding doors at our current pace we should be in between 2,100 and 2,400 doors for Holiday 2011, up from about 1,500 last year.

"The difficult economic situation has hit consumer spending very hard across Europe though we continue to do well in less mature markets such as Italy. The earthquake and tsunami in Japan and inventory hangover from our previous distributor have hurt sales in Japan though in visiting with our key retailers there, they believe that the impact of the natural disasters will begin to wane in Q4."