Home / Knowledge / News / K-Swiss reports first quarter results
K-Swiss reports first quarter results
07
May '10
K•Swiss Inc. announced results for the first quarter ended March 31, 2010. The sale of Royal Elastics on April 30, 2009, is accounted for as a discontinued operation in the Company's financial results and is excluded from futures orders data for the current and prior-year periods.

Financial Results
Net loss for the first quarter of 2010 was $4,698,000, or $0.13 per diluted share, compared with a net loss of $1,093,000, or $0.03 per diluted share, in the prior-year period.

For the first quarter of 2010, total worldwide revenues decreased 11.0% to $65,870,000 compared with $74,044,000 in the prior-year period. Domestic revenues decreased 21.2% to $23,940,000 in the first quarter, and international revenues decreased 4.0% to $41,930,000 for the same period.

Futures Orders
Worldwide futures orders with start ship dates from April through September 2010 decreased 1.6% to $72,529,000 at March 31, 2010. Domestic futures orders increased 2.7% to $29,115,000 at March 31, 2010. International futures orders decreased 4.3% to $43,414,000 at March 31, 2010. The reported futures orders as of March 31, 2010 do not include any adjustment for potential loss of customer orders associated with the temporary loss of some manufacturing capacity in Thailand.

Thailand Contract Sourcing
In April 2010, the Company's contract manufacturer in Thailand, one of only three manufacturers utilized by the Company in its global supply chain, ceased operations. As a result, it will not be able to fulfill orders for approximately 700,000 pairs scheduled to be produced during the second and third quarters of 2010. A majority of the pairs were being produced to fulfill orders primarily for Latin America and to a lesser extent Europe. The Company is attempting to secure production capacity in other facilities and secure permanent capacity for the primarily canvas product sourced from the Thailand manufacturer. The Company anticipates delays in replacing capacity and is not certain when and how much capacity will be replaced. Assuming the Company cannot fulfill any customer orders from previously scheduled Thailand production, the Company estimates a total impact of approximately $5,000,000 in lost revenues during the second and third quarters of 2010.

Amended Palladium Purchase Agreement
On May 1, 2010, the Company amended the Share Purchase and Shareholders' Rights Agreement, dated as of May 16, 2008, as amended by Amendment No. 1 dated June 2, 2009, by and among the seller, Palladium SAS and K•Swiss Inc. to revise the terms of the remaining future purchase price payable in 2013. The future purchase price will be equal to €3,000,000 plus up to €500,000 based on an amount calculated in accordance with a formula driven by Palladium's EBITDA for the twelve months ended December 31, 2012. In the second quarter of 2010, the Company will recognize the net present value of €3,000,000 in its Consolidated Statement of Earnings/Loss which will accrete to €3,000,000 at December 31, 2012. The €500,000 contingent purchase price will be determined each quarter based on the current quarter's projection of Palladium's EBITDA for the twelve months ended December 31 of the current year.


Must ReadView All

'Requirement of polyester filament yarn is increasing'

Textiles | On 19th Jun 2018

'Requirement of polyester filament yarn is increasing'

The requirement of polyester filament yarn (PFY) is increasing as it...

Courtesy: SAC

Textiles | On 19th Jun 2018

SAC to release pilot of Higg Facility Social Labour Module

The Sustainable Apparel Coalition (SAC) will release this year a...

Courtesy: Ebay

Apparel/Garments | On 19th Jun 2018

eBay partners with Noon for e-commerce sales in Middle East

Noon, the $1 billion e-commerce venture backed by Dubai businessman...

Interviews View All

Top executives
Textile & apparel bodies

The mid-term review of FTP is progressive, growth oriented

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search