Kenneth Cole Productions Inc. widened its fourth-quarter loss, partly because of a reduction in gross margin during the period that included the holiday season.
For the three months ended Dec. 31, the loss grew to $12 million, or 67 cents a diluted share, from $3.1 million, or 16 cents, in the year-ago quarter. Stripping out charges for asset impairment, investment write-downs and severance, the loss was 27 cents a share, 5 cents less than analysts’ consensus estimate. Total revenues fell 4.2 percent to $126.6 million from $132.1 million. Included in revenues was a 3.9 percent decline in sales to $114.9 million from $119.6 million and a comparable-store sales decrease of 10.7 percent.
Kenneth Cole said it “proactively converted inventory to cash during the peak holiday shopping season to increase liquidity.” However, that also meant a reduction in gross margins during the quarter, which fell to 42 percent of sales from 50.3 percent a year ago.
The company’s cost-cutting initiatives since last year have resulted in $20 million in annualized savings. Chief executive officer Jill Granoff said most of the recent reductions “are part of a comprehensive plan to create a more efficient and effective company that will drive increased value to our consumers, our partners, our customers and our shareholders.”
Chairman Kenneth Cole said, “Our new organization will be leaner and more responsive to ensure we are a viable, vibrant company regardless of the external environment.”
For the year, the loss was $14.8 million, or 80 cents, against net income of $7.1 million, or 35 cents, in 2007. Total revenues fell 3.6 percent to $492.3 million from $510.7 million.
Separately, the company’s board suspended the quarterly dividend to “preserve and manage liquidity.”
The firm’s shares closed at $5.84, down 6 cents or 1 percent, Tuesday before the earnings announcement.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)