Shares in footwear specialist K-Swiss fell by more than 10% after the company announced worse than expected third quarter results, with earnings and sales well down on 2006.

Net earnings for the three months ended 30 September fell to US$12.8m from US$21m in the same period last year. Global revenues also fell sharply from US$133.1m to US$107.2m.

That led to a net earnings dip for the year to date from US$66.2m to US$38.5m, with revenues falling from US$407.3m to US$332.3m.

K-Swiss has now dropped its fourth quarter revenue projections to US$73-81m, and its full-year forecast to US$405-413m.

Steven Nichols, company president and chairman of the board, said the domestic footwear business remained "very challenging...with no positive trends to speak of".

He added that international growth also appeared to be slowing.

"Investing in our growth for 2008 and 2009 was the top priority in the third quarter and will continue to be the main focus of the company for the next several quarters," Nichols added.

"We will continue to manage the company for the long term while aggressively investing the necessary dollars to prime future growth opportunities."