• Q3 losses were $2.88m
  • Revenues down 23.7% to $70.63m 
  • Worldwide futures orders drop 32%

Athletic footwear maker K-Swiss Inc has swung to a third quarter loss on lower sales, but said the results were in line with expectations.

"We have said all year that we are not looking for the short-term fix to our revenue and backlog trends," explained Steven Nichols, chairman of the board and president.

"Our strategy is slow and steady with a long-term focus on making performance shoes that will end up in everyday footwear and re-establishing the revenue and margin growth we enjoyed for nearly two decades."

He added that the firm focused on working through remaining inventories during the quarter, scaled up the sales of Palladium and continued investing in Classic, running, and tennis development.

Losses for the three months to 30 September were $2.88m or $0.08 per share, compared with earnings of $1.067m or $0.03 per share, a year earlier.

The Westlake Village, California based firm also posted a 23.7% drop in total worldwide revenues to $70.63m, down from $92.63m last time.

Domestic revenues fell 33.0% to $23.99m, and international revenues were down 18.0% to $46.65m.

Worldwide futures orders - an indication of future sales - with start ship dates from October 2009 through March 2010 were down 32% to $68.0m at the end of the quarter, compared with $100.08m a year ago.

Domestic futures orders fell 36.8% to $23.12m and international futures orders dropped 29.3% to $44.88m.

Looking ahead, the firm has left its full-year estimates relatively unchanged, and expects revenues of $230m to $240m and a loss per share of $0.70 to $0.80.