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Kenneth Cole achieves Comparable Store sales increase of 3.4%
07 May '08
3 min read
The Company's balance sheet remained strong at March 31, 2008 with cash and cash equivalents of $71.5 million versus $92.2 million a year ago. The Company noted that the decrease in cash reflected approximately $26 million used for stock repurchase as well as $13 million used to date in the acquisition of Le Tigre. The Company continues to have no long-term debt.
The Company noted that the soft wholesale business trend will likely result in lower shipments and reduced margins in the second quarter. To reflect this, the Company expects second quarter net revenues in the range of $108 million to $113 million and a loss per share of between $(0.11) and $(0.13).
During the first quarter the Company repurchased 413,000 shares of its common stock. It also noted that it is authorized to buyback up to 4.3 million additional shares and expects to continue to execute against its repurchase program during the second quarter.
The Company also announced that its board of directors had approved a quarterly dividend of $0.09 per share. The dividend is payable on June 12, 2008 to shareholders of record as of May 22, 2008.
Chairman Kenneth Cole said, "Although we met our guidance for the first quarter, we are not satisfied with our current financial performance or near-term outlook.
We believe, however, that a combination of continued progress in our Consumer Direct and Licensing businesses, overall expense reduction, and improved merchandising and marketing for our Wholesale business will result in our return to profitability in the second half of the year.
I am happy to welcome Jill Granoff, our new Chief Executive Officer, to work with me and our talented management team to drive improved performance."
The Company noted that the soft wholesale business trend will likely result in lower shipments and reduced margins in the second quarter. To reflect this, the Company expects second quarter net revenues in the range of $108 million to $113 million and a loss per share of between $(0.11) and $(0.13).
During the first quarter the Company repurchased 413,000 shares of its common stock. It also noted that it is authorized to buyback up to 4.3 million additional shares and expects to continue to execute against its repurchase program during the second quarter.
The Company also announced that its board of directors had approved a quarterly dividend of $0.09 per share. The dividend is payable on June 12, 2008 to shareholders of record as of May 22, 2008.
Chairman Kenneth Cole said, "Although we met our guidance for the first quarter, we are not satisfied with our current financial performance or near-term outlook.
We believe, however, that a combination of continued progress in our Consumer Direct and Licensing businesses, overall expense reduction, and improved merchandising and marketing for our Wholesale business will result in our return to profitability in the second half of the year.
I am happy to welcome Jill Granoff, our new Chief Executive Officer, to work with me and our talented management team to drive improved performance."
Kenneth Cole Productions Inc
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