Time to short Heely's stock? More likely time to bail!
Heely's are the new scooter...party looks like it's over, gentlemen...
Heelys posts 2Q loss as sales plunge 75 percent
Associated Press 08.07.08, 8:04 PM ET DALLAS - Heelys Inc., which makes wheeled shoes for children, said Thursday it swung to a loss in its second quarter as sales plunged 75 percent for its trademark shoes.
In the three-month period ending June 30, the company lost $394,000, or a penny a share, down from profit of $12.8 million, or 45 cents a share, in the same period last year. Sales plunged to $18.2 million, down from $74.3 million in the same period last year.
Don Carroll, chief executive officer, said the company is introducing a new advertising campaign aimed at spurring demand for its products. He also said the company is continuing to reduce its inventory.
The company's earnings were announced after the stock market closed Thursday.
Heelys (nasdaq: HLYS - news - people ) shares rose 28 cents, or 5.8 percent, to close at $5.09 in the regular session but fell 29 cents or 5.7 percent in after-market trading.
Heelys' business has been hurt for the past few quarters, pushing revenue and income down, as it sees a drop in demand.
Some analysts have said the domestic market for its wheeled sneakers has peaked. The weak economy has also hurt sales, and Heelys has reported canceled orders and reduced shipments in previous quarters.
Doctors' groups have also cited safety concerns with the shoes, and have recommended kids wear protective gear like knee pads and helmets. Heelys has said a study it commissioned showed that its shoes have a safer injury rate than skateboarding, inline skating and even swimming.
The shoes are sold with safety information including a recommendation to wear protective gear.
Re: Time to short Heely's stock? More likely time to bail!
My friend and i were talking today. How cool would it be if you did that thing, where you jump off, run and jump back on, except with these? So instead of running, you just roll on your heels.
Sounds like fun.
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[chandler95] 5:31 pm: this room is so much better than penis
Re: Time to short Heely's stock? More likely time to bail!
Crocs also found themselves in the same boat as it seems there's a limit to how many colourful styrofoam clogs people will buy. Now if someone would just combine Heelys with Crocs, I think we'd be witnessing the future of footwear...
Time to short Heely's stock? More likely time to bail!
