K-Swiss Inc. designs, develops and markets an array of athletic footwear for high-performance sports use, fitness activities and casual wear under the K-Swiss brand. The Company's principal product line, through 1987, was primarily the Classic. The Classic was originally developed, in 1966, as a high-performance tennis shoe. Since that time, the Classic has evolved from a high-performance shoe into a casual, lifestyle shoe. It also designs and manufactures footwear under the Royal Elastics brand. Royal Elastics, a wholly owned subsidiary, is a manufacturer of slip-on, laceless footwear. The Company also markets a limited line of K-Swiss branded apparel and accessories. K-Swiss markets its products in the United States primarily to a limited number of specialty athletic footwear stores, pro shops, sporting good stores and department stores. It also sells through its Website and to a number of foreign distributors.