--Kenneth Cole Productions Reports Second Quarter Results--
(Thomson Reuters ONE) -
--Kenneth Cole Productions Reports Second Quarter Results--
--Reports Q2 EPS of $0.03, in line with Expectations--
--Issues Q3 Guidance of 15% Revenue Growth and EPS of $0.29-$0.31--
New York, New York, August 03, 2011 / Thomson Reuters - Kenneth Cole
Productions, Inc. (NYSE: KCP) today reported financial results for the second
quarter ended June 30, 2011. The Company reported operating income of $1.1
million, flat versus the year-ago quarter. The Company reported net income per
fully-diluted share of $0.03 in the second quarter versus of $0.05 in the year-
ago period. The Company noted that during the quarter it took an impairment
charge of $0.02 per fully-diluted share against the value of its auction-rate
securities.
Paul Blum, Chief Executive Officer, commented, "Although second quarter results
were consistent with our short-term expectations, we are by no means satisfied
and are dedicated to improving every aspect of our business. We are focused on
creating great product, more effective marketing and improving the performance
of our operating segments across the board."
Net revenues in the second quarter decreased 5.3% to $102.2 million versus the
second quarter last year. Wholesale revenues were flat at $52.0 million versus
the year-ago period. Consumer Direct revenues declined by 11.5% to $39.6
million versus the year-ago period, due to the closing of unproductive full-
priced stores and a comparable store sales decline of 1.7%. Licensing revenues
in the second quarter declined to $10.6 million versus $11.1 million in the
year-ago quarter. Excluding royalties from a now terminated Le Tigre license,
licensing revenues were up 4.5%.
Gross margin declined 310 basis points to 40.6% versus the second quarter last
year. This anticipated decline was driven by higher sourcing costs, increased
promotion to clear inventory, and a shift in mix as Wholesale became a larger
percentage of total sales.
SG&A, as a percentage of net revenues in the second quarter improved 310 basis
points to 39.6% from 42.7% in the year-ago period. The improvement was the
result of an ongoing focus on cost efficiencies and the elimination of overhead
related to closed, unproductive full-priced stores.
The Company's balance sheet remained strong at June 30, 2011 with $56 million in
cash and no long-term debt. Total inventory was $40.7 million versus the prior
year's level of $35.2 million, in line with sales expectations. The Company
also noted that approximately $5.0 million of the increase was driven by
inventory required to support the Company's sportswear initiative.
The Company noted that during the quarter, it repurchased 143,800 shares for
approximately $1.7 million. This leaves approximately 3 million shares
available for repurchase under its existing authorization.
Kenneth Cole, Chairman and Chief Creative Officer, commented, "I am excited to
have Paul Blum return to the Company as our new CEO. The Company has begun
implementing a new strategic plan with a heightened focus on product, which has
already begun to energize and mobilize the organization."
Third Quarter Guidance
The Company expects to report third quarter earnings per share on a GAAP basis
of $0.29 - $0.31 versus the prior year level of $0.11 per share on revenue
growth of approximately 15%.
About Kenneth Cole Productions, Inc.
Kenneth Cole Productions, Inc. designs, sources, and markets a broad range of
footwear, handbags, apparel and accessories under the brand names Kenneth Cole
New York; Kenneth Cole Reaction; and Unlisted, as well as footwear under the
proprietary trademark Gentle Souls. The Company has also granted a wide variety
of third party licenses for the production of men's, women's and children's
apparel as well as fragrances, watches, jewelry, eyewear, and several other
accessory categories. The Company's products are distributed through department
stores, better specialty stores, company-owned retail stores and its e-commerce
website. Further information can be found at http://www.kennethcole.com/.
Forward Looking Statement Disclosure
The statements contained in this release, which are not historical facts, may be
deemed to constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Actual future results might
differ materially from those projected in such statements due to a number of
risks and uncertainties, including but not limited to, demand and competition
for the Company's products, the ability to enter into new product license
agreements or to renew or replace existing product licensee agreements, changes
in consumer preferences or fashion trends, delays in anticipated store openings,
and changes in the Company's relationships with retailers, licensees, vendors
and other resources. The forward looking statements contained herein are also
subject to other risks and uncertainties that are described in the Company's
reports and registration statements filed with the Securities and Exchange
Commission.
Company Contact
David Edelman
Chief Financial Officer
Kenneth Cole Productions, Inc.
(212) 265-1500
Investor Relations Contact
James R. Palczynski
Principal
Integrated Corporate Relations, Inc.
(203) 682-8229
Kenneth Cole Productions, Inc.
(unaudited)
(In thousands, except Quarter Ended Six MonthsEnded
per share & outstanding share
amounts)
06/30/11 06/30/10 06/30/11 06/30/10
Net sales $91,643 $96,888 $199,339 $196,281
Royalty Revenue 10,602 11,085 20,379 21,204
------------ ------------ ------------ -----------
Net revenues $102,245 $107,973 $219,718 $217,485
Gross profit 41,496 47,188 83,167 92,738
Selling, gen'l & 40,441 46,092 86,746 90,672
administrative expenses
Store closings & severance -- --
costs 12,482 --
------------ ------------ ------------ -----------
Total operating expense 40,441 46,092 99,228 90,672
Operating income/(loss) 1,055 1,096 (16,061) 2,066
Interest & other income, net 73 65 120 1,032
Investment impairment (376) (48) (376) (68)
------------ ------------ ------------ -----------
Income/(loss) before taxes 752 1,113 (16,317) 3,030
Provision for income taxes 173 176 306 261
------------ ------------ ------------ -----------
Net income/(loss) $579 $937 $(16,623) $2,769
Net income/(loss) per $0.03 $0.05 $(0.91) $0.15
share:Basic
Net income/(loss) per
share:Diluted $0.03 $0.05 $(0.91) $0.15
Average shares 18,296,000 18,146,000 18,268,000 18,119,000
outstanding:Basic
Average shares 18,581,000 18,517,000 18,268,000 18,501,000
outstanding:Diluted
Balance Sheet Data: 06/30/11 06/30/10
Cash & Cash Equivalents $56,247 $79,211
Accounts Receivable 36,398 32,206
Inventory 40,716 35,170
Total Assets 246,077 255,846
Working Capital 75,362 96,272
Accounts Payable & Accrued 46,904 39,486
Expenses
Long-term Debt - -
Total Shareholders' Equity 130,537 145,806
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Kenneth Cole Productions Inc. via Thomson Reuters ONE
[HUG#1535775]
Unternehmensinformation / Kurzprofil:
Datum: 03.08.2011 - 13:31 Uhr
Sprache: Deutsch
News-ID 56942
Anzahl Zeichen: 10091
contact information:
Town:
New York
Kategorie:
Business News
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