L.A. Gear’s 1st-Quarter Loss Runs Up to $11.6 Million : Apparel: Santa Monica-based shoemaker says it plans to return focus to women’s footwear business.

L.A. Gear Inc. said its first-quarter loss widened on a 42% decline in sales.

The Santa Monica-based athletic and outdoor shoe company said its loss widened in the three months ended Feb. 28 to $11.6 million, or 59 cents a share, from $2 million, or 17 cents, in the year-ago quarter.

Revenue fell to $69.4 million from $120.4 million a year earlier.

Gross margins, which rose to about 30% from 29% of sales, were $20.7 million in the latest quarter, down from $34.9 million last year.

The company attributed the decline in domestic sales to a drop in the sales of women’s and men’s shoes, and declining sales of children’s pressure-sensitive lighted shoes.

The company also cited sales of excess inventory to Wal-Mart Stores Inc. and sales of about $12 million of a new lighted Leap Gear product line in 1994 without a comparable introduction in the latest quarter.

L.A. Gear said it’s changing its marketing strategy to return the company to a women’s footwear business, and plans to continue expanding and increasing the visibility of its products through a national print and television advertising campaign aimed at women.

The company also will introduce its Street hockey line of children’s shoes and apparel this summer through a television advertising campaign, which will be endorsed by National Hockey League star Wayne Gretzky.

As of March 31, the combined domestic and international backlog of orders was $166.2 million, up from $156.7 million in March, 1994.

L.A. Gear is renegotiating the terms of its proposed $16.4-million cash-and-stock acquisition of Ryka Inc. Ryka said earlier this month that it might be forced to discontinue business if it can’t renegotiate the agreement.

Ryka is seeking short-term financing to meet a “critical cash shortage” before the expected completion of the merger by July 30. Norwood, Mass.-based women’s athletic footwear maker Ryka had about $300,000 in cash as of Dec. 31.