US: Kenneth Cole eyes turnaround as Q2 profit dips
- Q2 net profit US$579,000, down from $937,000
- Net revenues down 5.3% to $102.2m
- New CEO is “by no means satisfied” with performance
Footwear and accessories business Kenneth Cole Productions is targeting an improved third quarter after recording a smaller second quarter profit amid falling sales.
Wholesale revenues at the US company were flat at US$52m in the three months to 30 June, but retail sales fell 11.5% to $39.6m thanks to the closure of under-performing stores and a 1.7% decrease in comparable store sales.
Gross margin slumped by 310 basis points to 40.6%, impacted by higher sourcing costs, increased levels of promotion and a shift in the mix as wholesale took a larger proportion of total revenues.
“Although second quarter results were consistent with our short-term expectations, we are by no means satisfied and are dedicated to improving every aspect of our business,” said Paul Blum, the company’s new CEO.
“We are focused on creating great product, more effective marketing and improving the performance of our operating segments across the board.”
Company chairman and chief creative officer Kenneth Cole said he was excited by Blum’s return to the business, which he said was now being “energised and mobilised” by a new strategic plan with a heightened focus on product.
Kenneth Cole is forecasting third quarter earnings per share of $0.29-0.31 on revenue growth of about 15%.
Kenneth Cole has entered a licensing agreement with Delta Galil Industries to manufacture men's and women's underwear, loungewear and hosiery under the Kenneth Cole New York and Kenneth Cole Reaction ...
Adidas sportswear supplier Augusta Manufacturing is investing $5m at its factory in Nicaragua to create 500 jobs by the end of this year, and expects to double its workforce in 2012....
- Enthusiasm for tech in outdoor apparel on rise
- 2015: Welcome to the new fashion consumer
- New American Apparel CEO sees solid platform
- Outlook 2015: What's happening with sourcing?
- George at Asda on responsible retail journey
- EU exploring responsible garment supply chains
- Gap to close Piperlime division
- Kanati pulls production out of Pakistan
- Hanesbrands invests $1.5m in US hosiery plant
- US takes final step to WTO TFA implementation
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Outdoor performance apparel: peaks, valleys, and green fields
- Li & Fung Limited (494) - Financial and Strategic SWOT Analysis Review
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- E-Textiles: Electronic Textiles 2014-2024