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Kenneth Cole full year revenues increase 11% to $457 million
01 Mar '11
5 min read
As a result of the above factors, the Company reported a fourth quarter net loss of $2.7 million, or $0.15 per share. This included the direct impact of non-recurring charges as described above of $6.3 million.
The Company noted that its balance sheet remained strong at December 31, 2010. Inventory at the close of the quarter was $36.5 million compared to $29.1 million at this time last year. A significant portion of the increase is to support the new Reaction men's sportswear business. On a two-year basis inventory was down 15.7%. Cash and cash equivalents were $83.4 million, up $14.9 million versus the end of last year. The Company continues to operate with no long-term debt.
Mr. Cole commented, "We have maintained an excellent financial position and the ability to generate significant levels of cash. We have continued to develop strategically, including recent initiatives to grow our wholesale business with the addition of both men's and women's sportswear. Combined with a much healthier consumer direct business and a powerful licensing portfolio, we are poised and excited to take the next steps to grow our brands and our business."
"While we will maintain our discipline on cost and efficiency," concluded Mr. Cole, "we are also moving decisively to position our business to take advantage of opportunities by brand, category, and geography. We believe that we have the potential both to resume our growth and to deliver significant, sustained profitability to create significant value for our shareholders."
The Company announced in a separate release issued today that Jill Granoff will leave her position as Chief Executive Officer and resign as a Director of the Company, effective immediately. Kenneth Cole, Chairman and Chief Creative Officer, will serve as Interim Chief Executive Officer.
Additionally, the Company is pleased to announce that Paul Blum, who was with the Company for 15 years and served as President from 2002 to 2006, has agreed to return to the Company and assume the role of Vice Chairman. Mr. Blum most recently served as Chief Executive Officer of David Yurman from 2006-2010.
The Company noted that its balance sheet remained strong at December 31, 2010. Inventory at the close of the quarter was $36.5 million compared to $29.1 million at this time last year. A significant portion of the increase is to support the new Reaction men's sportswear business. On a two-year basis inventory was down 15.7%. Cash and cash equivalents were $83.4 million, up $14.9 million versus the end of last year. The Company continues to operate with no long-term debt.
Mr. Cole commented, "We have maintained an excellent financial position and the ability to generate significant levels of cash. We have continued to develop strategically, including recent initiatives to grow our wholesale business with the addition of both men's and women's sportswear. Combined with a much healthier consumer direct business and a powerful licensing portfolio, we are poised and excited to take the next steps to grow our brands and our business."
"While we will maintain our discipline on cost and efficiency," concluded Mr. Cole, "we are also moving decisively to position our business to take advantage of opportunities by brand, category, and geography. We believe that we have the potential both to resume our growth and to deliver significant, sustained profitability to create significant value for our shareholders."
The Company announced in a separate release issued today that Jill Granoff will leave her position as Chief Executive Officer and resign as a Director of the Company, effective immediately. Kenneth Cole, Chairman and Chief Creative Officer, will serve as Interim Chief Executive Officer.
Additionally, the Company is pleased to announce that Paul Blum, who was with the Company for 15 years and served as President from 2002 to 2006, has agreed to return to the Company and assume the role of Vice Chairman. Mr. Blum most recently served as Chief Executive Officer of David Yurman from 2006-2010.
Kenneth Cole Productions Inc
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