US: Kenneth Cole posts Q3 net income jump
Kenneth Cole Productions saw third-quarter net income more than double on the back of rising revenue and declining expenses.
The US clothing and footwear company today (2 November) said net profits reached US$5.8m against $2m in the same period of the previous year.
Revenue rose 8% to $128m, driven by higher wholesale revenues, which rose 27.5% to $79.7m. Consumer direct revenue was down 18.8% to $36.5m due to the closure of unproductive full-price stores. Comparable-store sales fell 10.1%.
Gross margin declined 480 basis points to 37.7% against the same period of the previous year. The company said the decline "was anticipated" and due to the combination of higher sourcing costs and a substantial mix shift in revenues.
"We are now implementing specific strategic initiatives to improve our product and the effectiveness of our marketing," said CEO Paul Blum.
"We are pleased to have generated both sales growth and an increase in profitability during the quarter. We are energised by this traction and expect ongoing gradual progress."
Separately the US-based footwear and clothing company said it has inked a partnership with Reliance Brands to make its first step into India.
American retail group Neiman Marcus has tapped Jimmy Choo CEO Joshua Schulman as the new president of Bergdorf Goodman....
Kenneth Cole Productions has appointed BofA Merrill Lynch as an advisor to assist it in evaluating a bid made by founder Kenneth Cole to take the company private....
Lifestyle brand business Kenneth Cole Productions recorded a net profit of US$8m in the fourth quarter of 2011, thanks to a 75% surge in wholesale revenues....
Footwear, apparel and accessories designer Kenneth Cole has put in a bid to take his namesake company private so it will be able to focus on long-term innovation rather than short-term earnings....
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