NEW YORK — Robust sales helped Kenneth Cole Productions raise its bottom line 15.8 percent in the third quarter, despite a charge taken on its Rockefeller Plaza store.
For the three months ended Sept. 30, the footwear, apparel and accessories marketer reported net income swelled to $6.8 million, or 33 cents. That compares with last year’s profits of $5.9 million, or 29 cents. A $4.4 million pretax charge for the write-down of the leasehold improvements at the Rockefeller Center flagship store subtracted 14 cents from earnings per share, while an audit of certain licensees resulted in a 3-cent gain. Without these items, EPS would have totaled 44 cents, 4 cents higher than Wall Street estimates.
Total revenues for the period rose 22 percent to $123.5 million from $101.2 million a year ago.
The company said its Rockefeller Plaza flagship was "dramatically affected by post-Sept. 11 retail environment here last year and continues to track below planned levels of sales productivity." While hopeful that it can turn a profit, KCP deemed an asset impairment charge "prudent and appropriate" and noted that the store’s significant contributions to its brand profile, international visibility and public relations value "cannot be quantified."
KCP released its earnings after the close of the market Wednesday. In New York Stock Exchange trading earlier in the day, its shares closed off 20 cents, or 0.9 percent, at $23.75.
"Despite our conservative nature and outlook, we were able to realize record revenues while controlling costs, which enhanced our operating profitability," Kenneth Cole, chairman and chief executive, said in a statement.
By segment, KCP’s wholesale revenue increased 29.4 percent to $76 million from $58.7 million in last year’s quarter. Consumer direct sales rose 7.5 percent to $39.3 million from $36.6 million in the year-ago period. Licensing revenue extended 38.5 percent to $8.2 million versus $5.9 million, while comparable-store sales slumped 0.6 percent for the quarter.
Looking ahead, the company raised its EPS guidance for the fourth quarter to between 32 and 34 cents, with sales expected to finish between $108 million and $110 million. This compares with prior guidance of 30 to 32 cents and $103 million to $108 million, respectively.For the nine months, income rose 23.1 percent to $17.7 million, or 86 cents a diluted share, compared with $14.4 million, or 69 cents. Sales notched up 9.9 percent to $315.7 million from $287.3 million.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye