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NEW YORK (AP) -- Shares of K-Swiss Inc. declined after Monday's opening bell when a Banc of America Securities analyst said poor traffic and warm weather likely hurt the athletic shoemaker's third-quarter results. The stock dropped $2.12, or 9.7 percent, to $19.82 in morning trading. Analyst Robert F. Ohmes said shares of K-Swiss, which reports quarterly results on Tuesday, have declined at least 15 percent in the past month. Fundamentals remain soft, with "still weakening results in the third quarter for most U.S. customers and still relatively high promotional levels at retail" and the "maturation" of its European business, he wrote in a client note. Also, warm weather and poor traffic have weighed on its Classics segment, which represents two-thirds of total revenue, Ohmes said. "We believe the ongoing weakness in the Classics category associated with a slowdown in athletic and the potential for a deceleration internationally are more than likely to offset a potential domestic turnaround," he wrote. K-Swiss is likely to offer a fourth-quarter and full-year 2007 forecast on Tuesday when it reports quarterly financials, as well, said Ohmes, who maintained his "Sell" rating and a $20 price target on the stock.
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