K-Swiss’ management indicates that its international expansion appears to be softening, although further growth is expected once the brand decides to enter new markets in Europe. The company’s total sales fell by 17.5 percent to $102.5 million in the 2nd quarter as a 13.2 percent increase to $48.8 million was insufficient to offset a further drop of 33.8 percent in the USA to $53.7 million. Sales to Foot Locker declined by 29 percent. Orders are off by 14.9 percent, with those coming from outside the USA up by only 1.3 percent. The gross margin shrunk to 43.5 percent from 49.6 percent a year ago. Net income declined by 62.3 percent to $7.7 million.