K Swiss Inc

A photo of Pope John Paul II wearing K-Swiss sneakers is on prominent display at the shoe manufacturer's corporate headquarters in Westlake Village. But it's not just the pope (photographed during a 1996 hiking jaunt in Colorado) who is a fan. Thanks to a successful marketing campaign aimed at young, fashion-conscious consumers, K-Swiss sales and stock prices are soaring toward the heavens, and investors have been turned into true believers.

Nike has Tiger. Reebok snagged Alan Iverson. And Adidas has been on a roll with Orlando Magic basketball star Tracy McGrady. But don't expect K-Swiss Inc. to engage in the multimillion-dollar race to sign sports stars to tout its athletic footwear and clothing. About the most the Westlake Village shoemaker ever ponied up was $90,000 a year for the "Woodies." Never heard of them? That's exactly the point, says K-Swiss President Steven Nichols, whose company claims 1% of the overall $16.

K-posted record revenue and profits for the fourth quarter of 1993 and the full year. The Chatsworth-based sneaker concern said in its fourth quarter that ended Dec. 31, its profit more than tripled to $1.5 million, compared with $395,000 a year earlier. Revenue in the quarter rose 12% to $23.8 million from $21.2 million a year earlier. K-Swiss attributed the increases to higher sales of its line of mid-priced leather sneakers and greater profit margins from reduced manufacturing costs.

Athletic shoe manufacturer K-Swiss at first glance looks like a mystery. The company finished 1999 with huge increases in sales and earnings, yet its stock has declined steadily since hitting a high near $60 last June. The stock declined 20.27% for the first quarter, closing Friday at $14.81 Hardly the kind of performance you might expect from a company that also finished the year with $53 million in cash on hand and no debt.

The board of directors of Westlake Village-based K-Swiss Inc. has declared a quarterly dividend of 2 cents per share payable Jan. 15 to stockholders of record Dec. 31, announced Steven Nichols, board chairman and president. In February 1994, K-Swiss initiated a cash divided program for the first time, payable at an annual rate of 8 cents per common share.

K-Swiss Inc., a Pacoima-based manufacturer of athletic shoes, said its first-quarter profit rose 22% from a year earlier on a 12% increase in revenue. In the quarter ended March 31, K-Swiss' net income climbed to $2.69 million from $2.21 million a year earlier. The company's revenue for the three months rose to $36.7 million from $32.8 million.

While behemoths Nike Inc. and Reebok International Ltd. have been fighting for the top spot in the U.S. athletic-shoe market, little K-Swiss Inc. in Pacoima has quietly been enjoying sterling growth. Under the guidance of President Steven Nichols, who took the helm in 1987 after leading an investment group's buyout of K-Swiss for about $20 million, K-Swiss has posted the sales gains by carefully expanding its once stodgy product line and its marketing channels.

K-Swiss Inc., a Pacoima-based maker of athletic footwear, said it has agreed to buy the remaining 50% stock of K-Swiss Europe Ltd. from C. & J. Clark Ltd. of England. The purchase price was not disclosed. K-Swiss Inc. said it would continue to invest in Europe. K-Swiss Europe is in its second year of operation.