Shares Of K-Swiss Fall Following Weak 1Q Report

PORTLAND, Ore. (AP) — Shares of K-Swiss Inc. continued to fall in trading Friday following a weak first-quarter earnings report by the shoe and apparel company.

K-Swiss, which is based in Westlake Village, Calif., on Thursday reported a net loss of $1.1 million, or 3 cents per share, for the quarter. That's down sharply from a profit of $7.1 million, or 20 cents per share, in the same quarter of the prior year.

The company's revenue declined nearly 25 percent to $74 million.

Shares of K-Swiss dropped 81 cents, or more than 8 percent, to $8.80 by midday trading Friday after declining 9.4 percent Thursday.

"We expected a tough start to the year in terms of sales and earnings results," K-Swiss President Steven Nichols said in a statement. "We definitely got one."

The company lowered its guidance and said it is not expecting a turnaround until after 2009.

K-Swiss now anticipates it will post a 2009 loss of 60 cents to 90 cents per share on revenue of $200 million to $230 million, down from an earlier estimate of a loss of 30 cents to 60 cents per share on revenue of $210 million to $250 million.