Pegasus International posted $4.4 million in net losses for its fiscal year, ended Dec. 31, marking a dramatic plunge from a net profit of $184,000 in 2014 due to a $5.4 million loss on exchange rate differences. Sales contracted by 3.7 percent to $74.7 million, as low double-digit declines in North America and other regions offset a healthy 24 percent increase in Asia. European sales fell by 2.9 percent. The gross margin was eroded by rising labor costs in China, where Pegasus International's factories are located, falling by 3.6 percentage points to 12.3 percent. This year, the Chinese OEM footwear manufacturer expects further price pressures in a slowing footwear market. There is no mention of the unidentified suitor for the company that apparently walked away from negotiations after an unfavorable ruling from the Hong Kong stock exchange in early January.

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