Home / Knowledge / News / Apparel/Garments / Kenneth CEO pleased with outcome of holiday season
Kenneth CEO pleased with outcome of holiday season
15
Feb '10
Kenneth Cole Productions, Inc announced that it will exceed prior earnings guidance by approximately $0.15 per share for operating performance in the fourth quarter ended December 31, 2009 due to a stronger than anticipated holiday season. Net revenues in the fourth quarter are expected to be approximately $110 million, in line with prior guidance of $107 million to $112 million.

The Company noted that the quality of its product and its inventory position improved versus the prior year resulting in better sell-through, less promotion and higher than expected gross margin during the quarter. The Company also noted that fourth quarter operating performance benefited from significantly lower expenses due to the Company's cost cutting programs.

As a result, the Company expects to report non-GAAP adjusted operating earnings for the quarter of approximately $0.21 per share versus its prior guidance of $0.04 to $0.08 per share, and a loss of ($0.27) for the fourth quarter last year. In addition, the Company announced that it expects to report a significant year over year improvement in the first quarter of 2010, with operating profitability near break-even vs. an adjusted EPS loss of ($0.41) for the first quarter last year.

Year-end cash increased to $69 million from $65 million a year ago, primarily due to enhanced inventory management. Inventories are anticipated to be down approximately 33% versus the same period a year ago. In addition, the Company continues to operate with no long-term debt.

• Adjusted Operating Earnings of Approximately $0.21 vs Loss of ($0.27) in Q4 '08
• Gross Margin Improvement, Expense Reduction Enable Above-Plan Performance
• $63 Million of Non-Cash Charges Expected for Deferred Tax and Other Asset Impairments

Jill Granoff, Chief Executive Officer, commented, "We are pleased with the outcome of our holiday season, during which we significantly exceeded our operating plan. Our focus on product and execution has begun to revitalize our business and drive improved performance. Our gross margins continue to rise and expenses continue to go down. We remain confident that we will see incremental improvement in fiscal 2010."

The Company noted that while its operating performance was stronger than anticipated, it also expects to record non-cash charges of approximately $63 million in the fourth quarter primarily for full valuation allowances against its deferred tax assets and impairment charges on certain of its stores and intangible assets.

At year-end, the Company was in a three-year historical cumulative loss position, which prompted the requirement of a full valuation allowance against the Company's deferred tax asset balance, resulting in a non-cash charge of approximately $44 million (as required by ASC 740). The Company noted that once it generates taxable income on a sustained basis, the need for a deferred tax asset valuation allowance could change, resulting in the reversal of all or a portion of the deferred tax asset valuation allowance. The Company further noted that the increase in the valuation allowance does not have any impact on its cash position, nor does such an allowance preclude it from using its tax losses, tax credits or other deferred tax assets in the future.


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Urmil Arya

Sushila International, a well established textile organisation established ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

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

January 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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