Kenneth Cole Productions Inc reported financial results for the third quarter ended September 30, 2006. Third quarter earnings per fully-diluted share were $0.45, versus the Company's recent guidance of $0.41 to $0.44 and the year ago third quarter earnings of $0.53 per share.
The company's third quarter revenues were $143.7 million, an increase of 5.8 percent from the year ago quarter, while operating income increased 8 percent to $13.6 million.
The third quarter of 2006 includes approximately $0.01 per share of options and restricted stock expense, while the year ago quarter included $0.09 per share for a tax benefit relating to the American Jobs Creation Act of 2004.
Excluding the tax benefit, the comparable EPS was $0.45 for the third quarter of 2006, versus $0.44 in the prior year period.
Third quarter wholesale revenues were $91.5 million, up 11.5 percent versus the prior year's level of $82.0 million. Consumer direct revenues for the third quarter decreased 3.2 percent to $41.4 million versus $42.7 million in the same quarter last year, with a comparable store sales decline of 10.3 percent versus the year-ago quarter.
Licensing revenue for the third quarter decreased by 1.9 percent to $10.8 million versus $11.1 million in the same quarter of the prior year.
Gross margin for the third quarter was 43.4 percent, versus the year-ago level of 44.6 percent, as increases in wholesale gross margin were more than offset by an increase in markdowns in the consumer direct segment.
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