US: Kenneth Cole “not satisfied” after Q4 earnings dip
Apparel group Kenneth Cole Productions is "not satisfied" with the company's performance after reporting a fourth quarter fall in sales and earnings.
The company reported a loss of $3.1m, or $0.16 per diluted share, thanks to a one-off charge equivalent to $0.33 per share.
Excluding this, earnings would have been $0.17 per share, in line with guidance, but well down on last year's net earnings of nearly $8m, or $0.39 per share.
Net revenues for the three months to 31 December were down 2.1% to US$132.1m.
Fourth quarter wholesale revenues were down 3.1% to $61.9m, while consumer direct revenues fell 0.6% on a comparable sales basis. Licensing revenue was flat at $12.6m.
"Although there are bright spots in our business, we are not satisfied by our results," said chairman and CEO Kenneth Cole.
"We believe that the business and financial decisions we are making will serve both the needs of the business and its shareholders."
The company also announced that it had authorised a 4m share increase to its authorised stock buyback plan.
Kenneth Cole is predicting net revenues in the $76-80m range for the first quarter of 2008, with earnings per diluted share at $0.03-0.05 - below the predictions of analysts.
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