Home / Knowledge / News / Apparel/Garments / Reaction performs well at Kenneth Cole
Reaction performs well at Kenneth Cole
11
Nov '10
Kenneth Cole Productions, Inc., a leading designer and marketer of fashion footwear, apparel and accessories, reported financial results for the third quarter ended September 30, 2010.

Earnings per fully-diluted share were $0.11 in the third quarter versus $0.01 in the year-ago period, slightly better than the Company's previous guidance of $0.08 to $0.10 per share. Diluted earnings per share for the nine month period grew by $0.89 to $0.26 versus the year-ago loss of ($0.63). The improved results for the quarter and year-to-date were driven by continued sales growth in all channels of distribution and ongoing expense leverage gained from the Company's streamlining initiatives.

Net revenues in the third quarter grew 14.7% to $119.0 million versus $103.8 million in the third quarter last year. Each of the Company's operating segments contributed to the growth in the quarter. For the nine months ended September 30, 2010, net revenues increased 11.8% to $336.5 million versus $301.0 million, with double-digit growth in the Company's Wholesale, Consumer Direct and Licensing business segments.

Wholesale sales in the third quarter grew by 21.0% to $62.5 million. This acceleration was driven by the launch of Reaction men's sportswear and double-digit growth in men's and women's footwear. Consumer Direct revenue for the third quarter increased by 8.0% to $45.0 million, resulting from a comparable store sales increase of 6.7% and continued strong double-digit growth in e-commerce. Licensing revenue in the third quarter increased 10.8% to $11.5 million.

Jill Granoff, Chief Executive Officer, commented, "We are pleased to report strong performance in the third quarter, as well as our fifth consecutive quarter of positive operating profit. On a year-to-date basis, we have achieved double-digit revenue growth in each of the Company's operating segments and significant improvement in earnings per share. Our brands remain strong and our operations are more efficient. We are excited by our recent initiatives to accelerate our growth, particularly the launch of Reaction men's sportswear and the strategic decision to bring our women's sportswear license in-house."

The Company noted that during the quarter, as previously announced, it reached an agreement with Bernard Chaus, Inc. (OTC Bulletin Board: CHBD) to terminate the women's sportswear license effective June 1, 2011. Total wholesale sales of Kenneth Cole women's sportswear are currently reported to be in excess of $50 million annually.

Consolidated gross margin in the quarter was 42.5% compared to 43.3% in the year-ago period. Margins declined slightly due to a higher mix of wholesale revenues in the quarter as well as a moderate increase of promotional activity in the Company's outlet stores versus the same period in the prior year.

Selling, general and administrative expenses as a percent of sales improved by 240 basis points to 40.6% from 43.0% in the year-ago quarter. The Company achieved these results through its streamlining initiatives and expense leverage on the revenue growth.


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

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Amiben Shroff
Shrujan

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Rupa Sood and Sharan Apparao
Nayaab

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

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