K-Swiss reports plunging profit

From the Associated Press

Athletic-shoe maker K-Swiss Inc. posted a 94% drop in quarterly profit and forecast that U.S. revenue would significantly decline in the first quarter and 2008.

For the fourth quarter, the Westlake Village-based company said it earned $596,000, or 2 cents a share, compared with $10.7 million, or 30 cents, a year earlier. Revenue decreased 17% to $78.2 million, mainly because of a 35% drop in U.S. revenue. International revenue rose more than 6% to $43.9 million.

Analysts on average were expecting earnings of 4 cents a share, before special items, on revenue of $77.1 million, according to Reuters Estimates.

K-Swiss expects earnings of about 18 cents to 28 cents a share on revenue of $95 million to $105 million for the first quarter. Analysts expect a profit of 30 cents a share on sales of $105 million.

Shares of K-Swiss fell $1.57 to $15.15.

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