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K-Swiss Inc. (KSWS) Message Board

  • callingbluff callingbluff Jan 18, 2013 9:55 AM Flag

    Good Move For All

    I think this selling of KSWS to E Land is a good move.

    1) It seems the current management (or now former management) lost direction and try to venture out into markets. And they failed. They didn't want to realize it, and it ended up costing KSWS badly (not only money but the key shelf space at stores). ow they can move forward in other things and try other adventures
    2) E Land seems ot be pretty solid out of Korea. I think this will go well with their portfolio and I can expect good things out of Asia for them with this brand. However, as for the US market, this will be a wait-and-see item....

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    • I agree.
      It was going to be very difficult for Mr. Nichols to get his company get back to profitability. For the K-Swiss brand a turnaround was dependent on the new versions of the K-Swiss Classic to sell extremely well. To date there is no evidence this was happening. The company's other brand, Palladium, had more significant growth prospects than the K-Swiss brand,, but Palldium is starting from a relatively small revenue base and it would have taken some spectacular shoe design styling work, and marketing, to get Palladium making big volume revenue numbers. Current K-Swiss management showed no history of being capable of deigning/marketing well enough to make this happen.
      Mr. Nichols did the right thing here, selling out for a respectable price. Without a sale there is at least a 50/50 chance K-Swiss stock price, in the coming year, would have decline to about $2.00 per share. Here at nearly $5 per share, KSWS stockholders are receiving a gift, really.
      The despicable lawyers trying to make a case that the price is too cheap don't understand the shoe industry.