Excluding the $7 million of shift in shipments from last year noted earlier Wholesale revenues would have decreased 12.5%.
SG&A expenses for the second quarter increased by less than 1% to $48.9 million. The Company's consolidated inventories decreased 3.3% to $49.3 million at June 30, 2007 versus the year ago level of $51.0 million.
Consumer Direct inventories decreased 11.3% to $21.3 million from $24.0 million in the prior year, while Wholesale inventories increased 3.7% to $28.0 million from $27.0 million last year.
The Company is comfortable with the level and content of its inventories.The Company's balance sheet remains strong with cash and marketable securities of $120 million at June 30, 2007, $28 million higher than a year ago. There is no long-term debt.
Chairman and Chief Executive Officer Kenneth Cole said, "Although our results were in line with our guidance and we have made some progress, we clearly have much to do. I'm confident that the investments we are making will pay off and will generate the desired improvement in our operating results."
Also the Company issued financial guidance for the third fiscal quarter; the Company expects to report net revenues in the range of $130 million to $135 million and earnings per fully-diluted share in the range of $0.15 to $0.18.
Included in this guidance is approximately $.12 of non-cash stock compensation charges and incremental expenses for the development and production of men's sportswear.
The Company announced that its board of directors had approved its quarterly dividend of $0.18 per share. The dividend is payable on September 13, 2007 to shareholders of record as of August 23, 2007.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
