Heelys is closing down its European office in Belgium and transferring most of the business to its French and German offices. Finance will be handled directly from the U.S. In the fourth quarter ended Dec. 31, the American brand of wheeled footwear reduced its operating losses by 41 percent and its net losses by 38 percent as its sales jumped by 63 percent to $10.9 million, rising to $5.2 million in the U.S. and to $5.7 million elsewhere. Annual revenues improved by only 5 percent to $32.0 million, but the company raised its sales in Italy and the U.K., while entering the United Arab Emirates through a distributor. The gross margin improved slightly to 41.6 percent, but the net loss for the year was up to $5.6 million from $3.9 million.

Topics