The company expects revenues for the third quarter of 2006 to be approx. $119 to $129 million and earnings per diluted share to be in the range of $0.40 to $0.50. It expects full year revenues to be approx. $470 to $480 million and expects to report full year earnings per diluted share of approx. $1.90 to $2.00.
The company's estimates for the third quarter of 2006 and full year 2006 reflect the continued investments in marketing, sales and product development for the Royal Elastics brand as well as the expansion of European operations.
Steven Nichols, Chairman of the Board and President, stated, "The results for the quarter demonstrate the benefit of past investments in building international sales and the continued need for new investment and concepts in our domestic business. The better-than-expected earnings and increased guidance also point to strong expense control and improved product margins. International revenues and backlog were once again decidedly positive with increases of 37% and 59%, respectively, for the second quarter."
"We are encouraged by the trends we see in the international backlog for the second half of the year and initial international bookings for the first quarter of 2007. However, the domestic business continues to be soft and, based on recent booking trends, indicate that a more realistic timeframe for stemming the domestic downturn is now at least the second half of 2007," he added.
K-Swiss Inc designs, develops and markets an array of athletic footwear for high performance sports use, fitness activities and casual wear under the K-Swiss brand. It also designs and manufactures footwear under the Royal Elastics brand. Royal Elastics, a wholly owned subsidiary, is the leading innovator of slip-on, laceless footwear.
marketing@alchempro.com
