I believe going forward, K-Swiss best strategy is to focus on K-Swiss classic category.
If running shoes, tubes, triathelete stuff, outdoor category shoes etc... are elimintaed it will be easier and less expensive to design , produce shoes, and advertise their shoes.
The K-Swiss classics alone (original white, colored versions, clean classic etc... ) can probably generate $100 to $125 million in annual , profitable worldwiide revenues each and every year.
Palladium brand, which is starting from a very limited USA rtail dirstribution base, can grow from $40 million annual revenues to $75 million, $150 million profitable revenues etc... in relatively little time.
K-Swiss could become a nice solidly proftable company with a narrow line of athletic shoes (K-swiss classic styles) and non-athletic shoes/boots from Palladium. Since neither K-Swiss or Palladium would be broad product lines, manufacturing is simplified. And advertising could be made very focused, effective.
First step in rebuilding the K Swiss brand is to eliminate their current VP of Product Design. David Bond. He was brought in 5 or 6 years ago from Adidas and promptly decided that performance running was the way to go. By neglecting the historical core business of the K Swiss brand, ie Classics and Lifestyle he managed to wipe out at least 200 million in net sells. For this he should go.
Next step would be returning to the roots of the brand by focusing on it`s nearly 50 year heritage of the original Classic and similar Classic lifestyle type product. As long as this brand tries to be a performance running brand it will only continue to bleed sales and cash.
K-Swiss seems to have a good model in their Palladium Boots brand. Classic styles, Heritage of 50+ years,Limited and select distribution, Clear brand image and message. Perhaps this is the approach that need to once again take place at K Swiss.