The Company also announced today that it will assume control of its men's collection sportswear business and plans to commence shipments beginning with the Spring 2008 season. The collection will be marketed under the Kenneth Cole New York brand and will incorporate a wider range of price points than previously available under that label. This effort is expected to require approximately $7 million of normal operating costs, which are incremental in fiscal 2007, during which the Company expects to record few, if any, revenues associated with the business.
Chairman and Chief Executive Officer Kenneth Cole said, "We are enthusiastic about men's collection sportswear. This is a unique opportunity to take control of an existing, developed, yet under-penetrated business with significant growth opportunities. It is also an opportunity to further enhance and evolve a classification of product paramount to the overall stature of each of our brands."
Mr. Cole continued, "We are confident that our new collection will excite both retailers and consumers. The launch will coincide with our company's 25th Anniversary, which will be promoted with the largest marketing campaign in our company's history. At the same time, we are pleased by the ongoing performance and acceptance of the Reaction brand. We are confident that Reaction, which continues to represent the largest portion of our business at retail, will benefit from this initiative."
Also today, the Company issued financial guidance for the second fiscal quarter; the Company expects to report net revenues of approximately $120 million and earnings per fully diluted share in the range of $0.14 to $0.16. The Company announced today that its board of directors had authorized its quarterly dividend of $0.18 per share. The dividend is payable on June 14, 2007 to shareholders of record as of May 24, 2007.
Kenneth Cole Productions Inc
marketing@alchempro.com
