K-Swiss sees net income fall 39%

Westlake Village-based shoemaker K-Swiss Inc. said third-quarter earnings fell 39% and the company lowered its 2007 guidance.

Net income fell to $12.8 million, or 36 cents a share, from $21 million, or 59 cents, a year earlier. Results included a 12-cent benefit related to overseas payroll withholding. Revenue fell 19% to $107.2 million.

Excluding one-time items, analysts polled by Thomson Financial predicted a profit of 34 cents on revenue of $117.6 million.

The company cut 2007 earnings guidance to between $1.08 and $1.17 a share, from between $1.10 and $1.25 a share previously. It now expects revenue between $405 million and $413 million, from between $410 million and $430 million previously.

Analysts expect a profit or $1.22 a share on revenue of $421.9 million.

For the fourth quarter, the company expects a profit of break-even to 9 cents a share on revenue of $73 million to $81 million. Analysts predict a profit of 16 cents a share on revenue of $79.9 million.

K-Swiss said guidance reflects a “significant decline” in domestic revenue, “substantial” investments in product development and international expansion.

Banc of America Securities analyst Robert F. Ohmes said a challenging athletic footwear environment continues to hurt the company.

Shares fell $2.22 to $18.34.