K•Swiss Inc. (NASDAQ: KSWS) yesteday announced it has completed the sale of Royal Elastics, the company’s laceless fashion footwear brand, to REH, an investment group led by Royal Elastics’ LA-based Product Design Director. The sale, which includes the company’s worldwide rights to the Royal Elastics brand, certain existing inventory, and other selected assets, is expected to result in a gain of $1.4 million, or $0.04 per diluted share, in the second quarter of 2009. Terms of the sale were not disclosed. The company will report earnings for the first quarter of 2009 on May 7.

Commenting on the announcement, Steven Nichols, Chairman of the Board and President, said, “We believe this new investment group understands the core essence of the Royal Elastics brand and are confident they will take the brand to a higher level.”

K•Swiss Inc. designs, develops and markets an array of athletic footwear for high performance sports use, fitness activities and casual wear.

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