Kenneth Cole Productions Inc. on Tuesday posted third-quarter results that were in the red due to a nonoperating impairment charge.
This story first appeared in the November 5, 2008 issue of WWD. Subscribe Today.
For the three months ended Sept. 30, the net loss was $1.6 million, or 9 cents a share, against income of $3.4 million, or 17 cents, in the year-ago quarter. Excluding the charge, which the company said “reflected an other than temporary decline in an investment in common stock held by the company,” earnings per share were 9 cents, at the high end of the company’s prior guidance.
Total revenues gained 1.4 percent to $132.1 million from $130.3 million, which included a 1.3 percent increase in sales to $120.2 million from $118.6 million. The balance included licensing income.
“We are pleased that we achieved our targets for sales and operating profitability for the quarter, despite current economic conditions,” said Kenneth Cole, chairman and chief creative officer.
Jill Granoff, chief executive officer, commented, “Our strong brands and balance sheet provide meaningful competitive advantages. We have recently completed our long-term strategic plan to accelerate growth and improve profitability. We are determined to drive tremendous value to consumers, customers, partners and our shareholders.”
Without specifying a time frame, the company said it set a goal to “double its revenues and profitability and generate at least $1 billion in reported revenues with double-digit operating margins.” Its long-term strategic plan calls for the implementation of six core initiatives: energize the brand, create compelling product, accelerate retail growth, revitalize the wholesale business, prepare for global expansion and build upon the strong corporate culture.
For the nine months, the firm registered a net loss of $2.8 million, or 15 cents a share, against earnings of $10.2 million, or 50 cents, last year. Total revenues fell by 3.4 percent to $365.8 million, which included a sales decline of 3.8 percent to $333.7 million.