K-Swiss developing holes in shoe sales on home front.FOOTWEAR Footwear consists of garments worn on the feet. It is worn for a variety of reasons, including protection against the environment, hygiene and adornment. Usually, socks and other hosiery are worn between the feet and the footwear, except for sandals and flip flops (thongs). company K-Swiss Inc.'s style mainstay--it s Classic shoe--is getting scuffed up. Sales of the Classic dipped 14 percent for the quarter ended March 31 from the same period the prior year, even with some offsetting due to a price increase. Overall, domestic revenues from K-Swiss brand products fell to $103 million in the first quarter from $118 million from the like quarter the year before. "The first quarter results continue to reflect the negative trends we have been experiencing in our domestic business," Steven Ste´ven n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. Nichols Nich·ols , Mike Originally Michael Igor Peschkowsky. Born 1931. German-born American stage and film director whose credits include The Odd Couple (1965) and the motion pictures Who's Afraid of Virginia Woolf? (1966) and , president and chairman of the board of Westlake Westlake, city (1990 pop. 27,018), Cuyahoga co., NE Ohio, a suburb of Cleveland; inc. as a city 1956. A growing city, its various manufactures include ink and plastics. Village-based K-Swiss, said in a statement. And Nichols didn't sound positive about the immediate future. He predicted a domestic turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. wouldn't be in full swing until 2007, at the earliest. Deena Friedman, an analyst with Brean Murray Murray, river, Australia Murray, principal river of Australia, 1,609 mi (2,589 km) long, rising in the Australian Alps, SE New South Wales, and flowing westward to form the New South Wales–Victoria boundary. Carret & Co., believes fashions are passing K-Swiss by. "We continue to be concerned that K-Swiss' product is not trend-right in this dressier fashion environment, which is more supportive of non-athletic footwear," she wrote in a research note. Friedman, who has a sell rating on K-Swiss, cut her earnings per share forecast 3 cents to $1.34, which is ahead of K-Swiss' reduced guidance of $1.55 to $1.74 for the year. After the company reported earnings last week, K-Swiss shares decreased 1.7 percent to land at $28.89 on April 27. There were a few bright spots during the first quarter. International K-Swiss brand sales were up 30 percent to $44.5 million. Revenues for its Australian-bred subsidiary Royal Elastics increased nearly 40 percent to $2.9 million worldwide. That increase happened with Royal Elastics' new L.A.M.B. product- the shoes associated with pop star Gwen Stefani's design outfit--on the shelves. Still, K-Swiss acknowledges that it is going to be concentrating on its ailing core domestic operation. "Reigniting the domestic business is our top priority," said Nichols. |
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