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L.A. GEAR REPORTS "DISAPPOINTING" LOSS
Published April 18, 1995
L.A. Gear reported a "very disappointing" net loss of $11.6M on "sharply lower sales for the fiscal" 1stQ of '95, ended February 28. The company, whose sales fell 42% to $69.4M from $120.4M, attributed the drop to a number of factors, including lower sales of its trademark children's lighted sneakers, a general drop-off in sales of women's and men's shoes and an average $2.20 price decrease on shoes sold in the U.S. L.A. Gear Chair Stanley Gold: "Although we recognize that the first- quarter results are very disappointing, they do not reflect the anticipated positive impact of the bold steps being taken by the company to increase sales." The steps include an ad campaign targeted at women and the introduction of a new line of kids' shoe endorsed by Wayne Gretzky (WALL STREET JOURNAL, 4/17). In other news, L.A. Gear has told MA-based Ryka Inc., makers of women's footwear, that it will terminate a proposed merger unless Ryka agrees to new terms. If the deal falls through and Ryka is acquired by another company within a year, Ryka might have to pay L.A. Gear $1M (BOSTON GLOBE, 4/18).