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

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Courtesy: ZDHC

Textiles | On 10th Dec 2016

China Textile Information Centre joins ZDHC programme

China Textile Information Centre (CTIC), a state-owned research...

Apparel/Garments | On 10th Dec 2016

Amazon India aims to be India’s biggest fashion retailer

Since fashion is the second biggest ecommerce category in India,...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Kevin Nelson
TissueGen

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search