Earnings Call Excerpt
K-Swiss Inc. (KSWS)
Q3 2009 Earnings Call
November 5, 2009 11:00 am ET
Executives
Steven Nichols – Chairman and President
George Powlick – Chief Financial Officer
Analysts
Jeff Van Sinderen – B. Riley & Company
Sam Poser – Sterne, Agee & Leach
Christopher Svezia – Susquehanna Financial Group
Brad Hathaway – Jay Goldman & Company
Presentation
Operator
Welcome to K-Swiss's Third Quarter conference call. For opening remarks and introductions I would like to turn the call over to Chairman of the Board and President, Mr. Steven Nichols.
Steven Nichols
With me today is George Powlick our Chief Financial Officer. We appreciate you being on the call this morning. Before I begin I would like to have George cover the Safe Harbor language.
George Powlick
Certain matters discussed in this press release are subject to certain risks and uncertainties that could cause actual results to differ materially, including but not limited to non-achievement of the assumptions discussed therein, general and regional economic conditions, availability of credit, industry trends, merchandise trends, including market acceptance of the company's product offerings, customer demand, competition, the impact of terrorism, and/or a potential global conflict on the worldwide economy, and order cancellations and reduced sales resulting from a slower worldwide economy.
A complete description of these factors as well as others which could affect the company's business is said forth in the company's periodic filings, including its Form 10-Q for the quarter ended September 30, 2009, which is currently on file with SEC.
Backlog as of any date represents orders scheduled to be shipped within the next six months. Backlog does not include orders scheduled to be shipped on or prior to the date of the determination of backlog. The mix of futures and at-once orders can vary significantly from quarter-to-quarter and year-to-year, and therefore futures are not necessarily indicative of revenues for subsequent periods.
Steven Nichols
We know that last quarter that the second half of the year would be tougher as we methodically work through our inventories and closeouts. The third quarter results were consistent with the strategy and are evident in the decision to leave our full year estimates relatively unchanged. We are on target with running some encouraging sell-throughs continue at select [inaudible] sold by shoes. Our triathletes are doing well in recent events which in turn is broadening our brand recognition.
The same can be said for [Klagen], we have tightly controlled distribution of this brand, and the customers that are trying out these shoes are reporting good sell-throughs as well. We've a long way to go and we'll of course take it slow and steady, but we like what we see so far. The breakdown of sales by product category for the third quarter of 2009 was as follows, performance 18%, lifestyle 62%, other 20%.
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