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NEW YORK — Kenneth Cole Productions Inc. posted double-digit bottom- and top-line gains in the second quarter, beating Wall Street’s forecast.
For the three months ended June 30, the New York-based branded manufacturer said net income grew 16 percent to $7 million, or 34 cents a diluted share, from $6.1 million, or 30 cents, a year ago. Excluding a one-time charge for the shuttering of its distribution center, Cole’s earnings would have been 37 cents a share, which exceeded analysts’ consensus estimate by 2 cents.
Net revenues for the period gained 16.6 percent to $113.1 million from $96.9 million last year. Of that total, sales increased 17.7 percent to $103.7 million, while licensing and other revenues improved 5.7 percent to $9.3 million.
“We surpassed our operational goals and have maintained our top-to-bottom focus on the design and quality of the company’s product and the need to get it to market in a consistently shorter time frame,” said chief executive officer Kenneth Cole in a statement. “We feel good about the prospects for the fall season and are optimistic with respect to the second half of the year.”
Reflecting that optimism, the company raised the ceiling on its third-quarter earnings guidance to 58 cents to 60 cents a share from 58 cents to 59 cents. Fourth-quarter and full-year earnings are still forecast at 55 cents to 56 cents and $1.83 to $1.86, respectively.
For the first half of the year, Cole said profits advanced 16.1 percent to $14.4 million, or 70 cents, from $12.4 million, or 61 cents, in the prior-year period.
Net revenues increased 13.7 percent to $235.4 million from $207.1 million. Of that, sales rose 14.1 percent to $217.1 million and licensing and other revenues climbed 9.1 percent to $18.4 million.
— Dan Burrows
This story first appeared in the July 30, 2004 issue of WWD. Subscribe Today.