Kenneth Cole excited over men's collection sportswear
02 May '07
3 min read
Kenneth Cole Productions Inc reported financial results for the first quarter ended March 31, 2007. The Company's first quarter net revenues were $129.3 million, an increase of 5.5% versus the year ago level of $122.6 million. Operating income in the quarter increased by 18.7% to $4.3 million versus $3.7 million in last year's first quarter. First quarter earnings per fully-diluted share were $0.17 versus the year-ago first quarter earnings of $0.15 per share.
First quarter wholesale revenues were $82.9 million, up 9.3% versus the prior year's level of $75.9 million. The year-ago period was negatively affected, as the Company has previously noted, by approximately $7 million of delayed shipments, due to the start-up of a new distribution facility.
Consumer direct revenues for the first quarter increased 1.6% to $36.9 million versus $36.3 million in the same quarter last year, with a comparable store sales decline of 1.5% versus the year-ago quarter. Licensing revenue for the first quarter decreased by 8.7% to $9.5 million versus $10.4 million in the same quarter of the prior year due to a previously announced change in the men's sportswear license.
Gross margin for the first quarter was 40.6%, versus the year-ago level of 41.9%, due to slightly lower wholesale margins as well as the shift in mix toward wholesale. SG&A expense as a percent of sales for the first quarter was 37.3% of sales versus 38.9% in the year-ago quarter.
The Company's consolidated inventories decreased 13.0% to $46.7 million on March 31, 2006 versus the year-ago level of $53.7 million, in part reflecting the wholesale shipping timing issue from the year-ago period. Consumer direct inventories decreased 13.8% to $21.9 million from $25.4 million in the prior year, while wholesale inventories decreased 12.3% to $24.8 million from $28.3 million last year. The Company is comfortable with the level and content of its inventories.
marketing@alchempro.com
