KSWS Fourth Quarter Analysis
Today KSwiss (KSWS) released the fourth quarter report. KSwiss reported fourth-quarter net income of $0.6 million, or $0.02 per share, compared with $10.7 million, or $0.30 per share, a year earlier. So, definitely a drastic decrease from last year. However, being the optimist that I am I really like the comments of the CEO today,
“We’ve been saying for several quarters now that domestic business will be weak until at least late in 2008,” Nichols said. “From what we have seen in the retail environment as of late and order indications, that expectation needs to be extended until 2009.”
He goes on to state that the dramatic decrease in sales is directly related to domestic growth. And a small glimmer of hope can be seen in the international market which had an increase in sales.
“Worldwide revenue and backlog are down overall on continued weakness in the domestic market, while international revenue is up albeit at a slower pace in the fourth quarter than we experienced earlier in the year.”
Anyway, it looks like KSWS has had a tough year. I’m still going to keep my eye on this stock. I don’t expect to purchase anything till the market strengthens.
Posted
on
Tuesday, February 26th, 2008 at 4:50 pm under