The footwear industry is brutally competitive, and it looks like K-Swiss (Nasdaq:KSWS) is well on its way to being one of those cautionary tales. Although K-Swiss technically broke a five year streak of year-on-year revenue declines, free cash flow has declined six years running and the company's ongoing survival is no sure thing. While a hit product could turn things around relatively quickly, K-Swiss is starting to look like a longer and longer shot with each quarter.
A Fairly Lousy Fourth Quarter
Although K-Swiss did report 18% revenue growth for the fourth quarter (against expectations of a 3% drop), that surprising jump in sales did the company little good. Domestic sales rose more than 10% and international sales jumped almost 24%, but profitability was a major issue.
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http://stocks.investopedia.com/stock-analysis/2012/Can-K-Swiss-Stop-The-Bleeding-KSWS-NKE-SKX-BWS-FL-FINL0223.aspx#axzz1mCOsX1dQ
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