The American athletic shoe company, which is set to be taken over by E-Land of South Korea for $170 million, reports a 17.0 percent drop in its total sales to $222.9 million for the past year, but it net losses were practically cut in half to $34.8 million from $70.5 million the year before. The gross margin improved slightly to 34.6 percent and operating losses declined by 51.9 percent to $30.8 million.
Sales of the K-Swiss brand declined by 39.8 percent to $65.9 million in the U.S., with drops of 41.4 percent in performance shoes and 40.5 percent in the running category. In other markets, the brand's revenues were off by 6.6 percent to $97.0 million. Instead Palladium, the company's French-based casual footwear brand, improved its sales by 18.8 percent to $51.8 million, reaping the fruits of intense marketing and selling efforts.
In the fourth quarter of last year, the group's sales were off by 17.8 percent to $41.2 million, falling by 31.4 percent domestically and by 8.5 percent abroad, but the net loss went down to $14.5 million from $25.2 million in the same period a year earlier.
The prospects for this year's business are relatively promising, considering an increase in global futures orders of 4.6 percent for deliveries through June 2013. They were up by 1.3 percent in value in the U.S. and by 6.0 percent abroad.