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.
This story first appeared in the August 6, 2008 issue of WWD. Subscribe Today.
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.