SG&A expense for the fourth quarter improved to 36.9% of net revenues versus 39.0% in the year-ago quarter due to tighter control of operating expenses. As a result, operating income increased 11.8% to $11.6 million in the fourth quarter, versus $10.4 million in the prior year quarter.
The Company's consolidated inventories increased 1.8% to $46.3 million on December 31, 2006 versus the year-ago level of $45.5 million, in-line with the sales increase in the quarter. Consumer direct inventories decreased 11.5%, while wholesale inventories increased 16.6% to $25.0 million, due to the planned early receipt of goods. The Company is comfortable that its inventory is current.
The Company announced that its board of directors had approved its quarterly dividend of $0.18 per share. The dividend is payable on March 23, 2007 to shareholders of record as of March 8, 2007.
Also the Company announced guidance for the first quarter of 2007 with EPS in the range of $0.15 to $0.18 per fully diluted share. The Company expects revenues in the range of $124 to $128 million.
The Company also noted that this guidance for the first quarter includes approximately $0.05 per share of employee stock options and restricted stock expense and that the year ago earnings of $0.15 per share included $0.02 per share of options and restricted stock expense.
Kenneth Cole Productions Inc
marketing@alchempro.com
