Kenneth Cole Productions Inc. posted second-quarter losses, which were exasperated by costs associated with the designer’s pending acquisition of the company and charges related to a distribution center.
This story first appeared in the August 2, 2012 issue of WWD. Subscribe Today.
In June, the company agreed to Cole’s offer to buy out other shareholders at a price of $15.25 a share.
Net losses for the quarter tallied $3.7 million, or 20 cents a share, compared with earnings of $579,000, or 3 cents, a year ago. Excluding costs associated with the buyout and charges related to a distribution center, at which a third-party logistics operator became insolvent, losses for the quarter were 3 cents a share.
Sales for the three months ended June 30 slipped 4.5 percent to $87.5 million from $91.6 million. Wholesale revenues fell 3.3 percent to $50.3 million and direct-to-consumer revenues decreased 6.1 percent to $37.2 million.