K•Swiss Inc announced results for the fourth quarter and year ended December 31, 2011. The operations of FORM Athletics are accounted for as a discontinued operation in the Company's financial results and are excluded from futures orders data for the prior-year periods.
Net loss for the fourth quarter of 2011 was $25,185,000, or $0.71 per diluted share, compared with a net loss of $20,635,000, or $0.58 per diluted share, for the prior-year period. Net loss for the year ended December 31, 2011 was $70,471,000, or $1.98 per diluted share, compared with a net loss of $68,212,000, or $1.94 per diluted share, for the year ended December 31, 2010. Results for 2010 include a valuation allowance taken against the Company's deferred tax assets, resulting in income tax expense for 2010 $7,932,000.
For the fourth quarter of 2011, total worldwide revenues increased 17.8% to $50,163,000 from $42,574,000 in the prior-year period. Domestic revenues increased 10.3% to $20,421,000 in the fourth quarter, and international revenues increased 23.6% to $29,742,000 for the same period. Total worldwide revenues for 2011 increased 23.8% to $268,357,000 from $216,766,000 for 2010. Domestic revenues increased 26.7% to $116,781,000 in 2011, and international revenues increased 21.7% to $151,576,000 for the same period.
Futures Orders
Worldwide futures orders with start ship dates from January through June 2012 decreased 21.3% to $73,138,000 at December 31, 2011, from $92,904,000 the previous year. Domestic futures orders decreased 51.6% to $21,879,000 at December 31, 2011, from $45,216,000 the previous year. International futures orders increased 7.5% to $51,259,000 at December 31, 2011, from $47,688,000 the previous year.
Steven Nichols, Chairman of the Board and President, stated, “For the past four years, we have invested substantial resources in driving performance running/Ironman Triathlon. In addition to growing our performance category, our 2012 focus will be on bringing expenses and inventory in line with our historical positions and developing the franchise for the Clean Classic series.”
2012 Guidance
For 2012, the Company is presently forecasting full year consolidated revenues to be approximately $240 million to $250 million. Consolidated gross margin is expected to be approximately 40% to 41%. Selling, general and administrative expenses are expected to be about $110 to $112 million.
Founded more than forty years ago in Van Nuys, California, K•Swiss introduced the first all-leather tennis shoe, the K•Swiss “Classic” in 1966. Since its inception, K•Swiss has rooted itself in California Sport with an aim to be the most inspiring and innovative sports brand in the market. Today the Company offers performance and lifestyle footwear and apparel for several categories under its California Sports umbrella including Tennis Heritage, California Fit (Running, Triathlon and Fitness) and California Youth.
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