Home / Knowledge / News / Apparel/Garments / Jump in Kenneth Cole's wholesale sales in Q4
Jump in Kenneth Cole's wholesale sales in Q4
02
Mar '12
Kenneth Cole Productions Inc. reported financial results for the fourth quarter and full year ended December 31, 2011.

For the full year revenues increased 4.7% to $478.9 million, gross margins were down 410 basis points, and selling, general and administrative expenses as a percentage of revenues decreased 460 basis points. The Company reported a loss of $(2.9) million for the full year, or $(0.16) per share, compared to a profit of $2.1 million or $0.11 per fully diluted share in 2010.

For the fourth quarter, net revenues increased 8.6% to $131.2 million versus $120.8 million in the fourth quarter last year. Wholesale revenues were up 47% to $62.3 million versus the year-ago period. Over 75% of the revenue increase was driven by the inclusion of non-comp Kenneth Cole New York women's sportswear in Wholesale, increased doors in Reaction men's sportswear and a one-time special holiday handbag program.

Consumer Direct revenues decreased 16.6% to $54.7 million versus the year-ago period due to the closing earlier in the year of several unproductive full-priced stores and a comparable store sales decline of 5.0%. Licensing revenues in the fourth quarter improved approximately 10% to $14.2 million versus $12.9 million in the year-ago period, driven primarily by higher than anticipated inventory purchases by one international licensee.

Gross margin declined 230 basis points to 41.2% in the fourth quarter compared to 43.5% in the year ago period. This resulted primarily from the combination of higher sourcing costs and a mix shift in revenues toward Wholesale.

Selling, general and administrative expenses, which do not include one-time charges in each fourth quarter, improved 680 basis points to 33.8% from 40.6% in the year ago period. This improvement was primarily the result of the elimination of overhead related to unproductive stores closed in the first quarter of 2011 and leverage achieved on Wholesale growth.

Net income on a GAAP basis for the fourth quarter was $8.0 million, or $0.43 per fully diluted share versus a loss of $2.7 million, or $(0.15) in the year ago period. The Company noted that due to losses in prior years it did not provide for any federal income taxes in its earnings per share calculation.

The Company ended the year with $58 million in cash and no long-term debt. Inventory increased 12.2% to $42.2 million versus the prior year's level of $37.7 million.

In addition, the Company repurchased 107,627 shares of its stock for approximately $1.1 million during the quarter. The company has subsequently suspended activity under the repurchase program.

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; Unlisted; and Le Tigre, 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.

Kenneth Cole Productions Inc.


Must ReadView All

Textiles | On 23rd Jun 2017

Ralph Lauren ex-president Tiger of Sweden's new CEO

Hans-Christian Meyer, former president of Ralph Lauren Corporation,...

Apparel/Garments | On 23rd Jun 2017

Uware Brands into licensing agreement with Polaroid

Uware Brands has entered into a licensing agreement with Polaroid for ...

Textiles | On 23rd Jun 2017

Casper raises total funding of $240 million

Casper, the global sleep company launched three years ago has...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search