By  on August 6, 2008

Kenneth Cole Prod­­uctions Inc. had a tough go of it in the second quarter, with lower sales pushing the footwear and apparel company to a loss, although results were better than expected and executives said the business has a firm footing.

Losses for the three months came in at $2.1 million, or 11 cents a share, compared with profits of $3.3 million, or 16 cents, a year ago.

According to Yahoo Finance, analysts had pegged the company for a loss of 13 cents a share, meaning it beat expectations by 2 cents.

Revenues for the quarter ended June 30 dipped 6.6 percent to $111.2 million from $118.9 million.

“While we are not satisfied with our results, we continue to make progress and believe we have significant near and long-term opportunities,” said Kenneth Cole, chairman and chief creative officer.

Jill Granoff, who took on the role of chief executive officer in May and has now had a chance to analyze the business, said the company has room to spread out.

“We are underpenetrated on a global basis with potential to grow across categories, geographies and distribution channels,” said Granoff.

For the first half, losses of $1.2 million, or 7 cents a share, compared with year-ago earnings of $6.7 million, or 33 cents. Revenues decreased 5.9 percent to $233.6 million from $248.3 million.

In the third quarter, the company is expecting earnings of 7 to 9 cents a share on revenues of $125 million to $130 million.

Joining in a general retail rally, shares of Kenneth Cole shot up 8.1 percent to $13.65 Tuesday before results were released after the close of the market.

To Read the Full Article
SUBSCRIBE NOW

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus