Interviews
News Flash
K-Swiss reports fourth quarter results
19 Feb '10
4 min read
For 2010, the Company expects full year consolidated revenues to be comparable to 2009. On a year-over-year basis, the Company expects to report a decline in the first quarter, a flat comparison in the second quarter and increases in the third and fourth quarters. The uncertainty about forecasting revenues is illustrated by the unusual, subsequent decline in second quarter 2010 backlog, relative to the prior year, from December 31, 2009, to now.
Consolidated gross margin is expected to increase to approximately 40% compared with 35.8% in 2009 due to expected lower closeout sales during 2010 compared to 2009.
Selling, general & administrative expenses are expected to rise to $135 million to $140 million due to increased marketing expenditures. These expenditures will be continually evaluated and could change over time, including the possibility of even greater marketing expenditures depending on available branding opportunities.
The tax benefit rate is projected to be approximately 30%. Should the Company be unable to substantiate evidence for realizing the benefit of its deferred tax assets in the second half of the year, the Company might be required to establish a reserve of $8 million at December 31, 2010, plus any deferred tax assets established in 2010.
Steven Nichols, Chairman of the Board and President, stated, “We continued to make progress in the quarter with managing overhead and inventories tightly, allocating resources to revitalize our brands and securing strategic sponsorships in tennis and running. As evidenced by our guidance for 2010, we will continue to invest in marketing, design, development and technologies to position the K•Swiss and Palladium brands for success in 2011.”
Consolidated gross margin is expected to increase to approximately 40% compared with 35.8% in 2009 due to expected lower closeout sales during 2010 compared to 2009.
Selling, general & administrative expenses are expected to rise to $135 million to $140 million due to increased marketing expenditures. These expenditures will be continually evaluated and could change over time, including the possibility of even greater marketing expenditures depending on available branding opportunities.
The tax benefit rate is projected to be approximately 30%. Should the Company be unable to substantiate evidence for realizing the benefit of its deferred tax assets in the second half of the year, the Company might be required to establish a reserve of $8 million at December 31, 2010, plus any deferred tax assets established in 2010.
Steven Nichols, Chairman of the Board and President, stated, “We continued to make progress in the quarter with managing overhead and inventories tightly, allocating resources to revitalize our brands and securing strategic sponsorships in tennis and running. As evidenced by our guidance for 2010, we will continue to invest in marketing, design, development and technologies to position the K•Swiss and Palladium brands for success in 2011.”
K-Swiss Inc
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
