COLE STOCK UP ON REVISE
NEW YORK — Kenneth Cole Productions Inc. on Monday said it will report higher total revenues and earnings for the first and second quarters than previously expected.
For the quarter ended March 31, earnings per share are expected to be 26 cents on total revenues, including royalty income, of $92 million. Previous guidance was 16 to 18 cents on a revenue range of $88 million to $92 million.
Updated guidance for the second quarter has EPS at between 14 and 16 cents on revenues between $90 million and $93 million. The previous guidance was EPS of between 10 and 12 cents on a revenue range of between $87 million and $92 million.
The revisions delighted investors, who sent KCP shares up $4.80, or 24.6 percent, to close at $24.30 in New York Stock Exchange trading Monday.
Stan Mayer, chief financial officer, said in statement: “We remain comfortable with the current forecast for second-half earnings of 62 cents, which would represent a 55 percent increase over the comparable period last year.”
Kenneth Cole, chairman and chief executive officer, commented: “We continue to be highly pleased with the tone and pace of our wholesale business. Our sell-through remains strong and our backlog is now posting solid improvement of about 20 percent versus the year-ago level. We believe, given our continued clean inventory position and the strong response to our product at the retail level, that we are firmly on the road to recovering from the difficulties of the past year.”
In the year ended Dec. 31, KCP saw net income plunge 56.7 percent to $16.6 million as total revenues declined 5 percent to $364 million.
The firm will report first-quarter results on May 1.