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Sales marginally down at Kenneth Cole in Q1
03 May '12
2 min read
Kenneth Cole Productions Inc. reported financial results for the first quarter ended March 31, 2012.
The Company reported that net revenues in the first quarter were $116.8 million, versus the year-ago level of $117.5 million. Wholesale revenues were up 3.0% to $76.7 million versus the year-ago period.
Consumer Direct revenues decreased 6.7% to $31.0 million versus the year-ago period due to the operation of four fewer stores and a comparable store sales decline of 2.0%. Licensing revenues in the first quarter declined 6.3% to $9.1 million versus the prior year's level due principally to the transition of the women's apparel business to an in-house operation from a licensing model.
Gross profit improved by 140 basis points to 36.9% in the first quarter ended March 31, 2012 compared to 35.5% in the year-ago period, primarily due to less clearance activity than last year, which was highly promotional to clear excess inventory from store closings.
As a percentage of net revenues, selling, general and administrative expenses ("SG&A"), excluding other charges (severance, store closings, deferred compensation plan liability charges and costs in connection with proposed transaction), decreased 140 basis points to 38.0% vs. 39.4% versus the year-ago period. SG&A dollars, excluding these other charges, decreased $1.9 million to $44.4 million.
The net loss for the first quarter was $(1.9) million or $(0.10) per share versus a loss of $(17.2) million or $(0.94) per share in the prior year's quarter. The Company noted that last year's loss of $(17.2) million included $12.5 million of other SG&A charges relating to store closings and severance.
The Company ended the quarter with $48.9 million in cash and no long-term debt. Inventory increased 5.9% to $45.6 million versus the prior year's level of $43.1 million.
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; Unlisted; and Le Tigre, as well as footwear under the proprietary trademark Gentle Souls.
The Company reported that net revenues in the first quarter were $116.8 million, versus the year-ago level of $117.5 million. Wholesale revenues were up 3.0% to $76.7 million versus the year-ago period.
Consumer Direct revenues decreased 6.7% to $31.0 million versus the year-ago period due to the operation of four fewer stores and a comparable store sales decline of 2.0%. Licensing revenues in the first quarter declined 6.3% to $9.1 million versus the prior year's level due principally to the transition of the women's apparel business to an in-house operation from a licensing model.
Gross profit improved by 140 basis points to 36.9% in the first quarter ended March 31, 2012 compared to 35.5% in the year-ago period, primarily due to less clearance activity than last year, which was highly promotional to clear excess inventory from store closings.
As a percentage of net revenues, selling, general and administrative expenses ("SG&A"), excluding other charges (severance, store closings, deferred compensation plan liability charges and costs in connection with proposed transaction), decreased 140 basis points to 38.0% vs. 39.4% versus the year-ago period. SG&A dollars, excluding these other charges, decreased $1.9 million to $44.4 million.
The net loss for the first quarter was $(1.9) million or $(0.10) per share versus a loss of $(17.2) million or $(0.94) per share in the prior year's quarter. The Company noted that last year's loss of $(17.2) million included $12.5 million of other SG&A charges relating to store closings and severance.
The Company ended the quarter with $48.9 million in cash and no long-term debt. Inventory increased 5.9% to $45.6 million versus the prior year's level of $43.1 million.
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; Unlisted; and Le Tigre, as well as footwear under the proprietary trademark Gentle Souls.
Kenneth Cole Productions Inc
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