US: Kenneth Cole Q4 loss widens to US$12m
Footwear, apparel and accessories company Kenneth Cole Productions posted a fourth quarter loss of US$12m, thanks to a double-digit decline in comparable store sales.
Revenues in the three months to 31 December fell 4.2% to $126.6m, the company said.
Comparable store sales declined 10.7%, and the $12m loss compared to a net loss of $3.1m in the same period of 2007.
Full-year revenues were down 3.6% to $492.3m, with comps falling 2%.
Kenneth Cole posted a full-year loss of $14.8m, compared to a profit of $7.1m in 2007.
Describing the US retail climate as "one of the worst in decades", the company pointed out that promotions had slimmed down inventory - and margins - while cost reductions would total more than $20m on an annualised basis.
"We recognise that these are unprecedented times and we are taking decisive and necessary steps to make us a better, stronger company," said company chairman Kenneth Cole. "Our new organisation will be leaner and more responsive to ensure we are a viable, vibrant company regardless of the external environment."
The board of directors decided to suspend payment of the company's quarterly dividend.
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