US: Kenneth Cole swings to Q2 loss
- Company swings to Q2 net loss of $3.7m
- Net sales down 4.5% to $87.5m
- Comparable store sales declined 2.7%
New York designer Kenneth Cole Productions has swung to a second-quarter net loss on the back of lower sales and one-off costs.
For the quarter ended 30 June, the company recorded a net loss of US$3.7m, compared to a $579,000 net profit in the same period last year. The group posted a operating loss of $4.2m, compared to a $1.1m operating profit last year.
Net sales declined 4.5% to $87.5m. Wholesale revenues edged down 3.3% to $50.3m as a result of lower demand for private label footwear and Reaction handbags. Consumer direct revenues fell 6.1% to $37.2m due to the operation of two fewer stores and a comparable store sales decline of 2.7%.
During the quarter, the company incurred charges charges linked to a new distribution centre following the insolvency of one of its third-party logistics operators, as well as professional service costs related to a deal led by founder Kenneth Cole to take the company private.
For the half-year, Kenneth Cole's net loss narrowed to $5.6m, compared to $16.6m the same period last year. Operating loss also narrowed to $8m, compared to a $16.1m loss last year. Net sales edged down 2.1% to $195.2m.
Fifth & Pacific Companies has reiterated its commitment to its struggling Juicy Couture brand as the apparel firm outlined its goals and priorities for 2013....
Reliance Retail, the retail arm of industrial conglomerate Reliance Industries, has booked an increase in nine-month sales....
Delta Galil Industries is to be the exclusive licensee of Columbia Sportswear's global sock business beginning with the autumn 2013 season....
- SOURCING: Production problems weigh on Pakistan
- What next for smart fabrics and garments?
- Smart sportswear faces mass production challenges
- Cutting-edge companies focus on consumer needs
- Lesotho risks garment job losses if AGOA lapses
- “Unsafe” Bangladesh factory refuses to evacuate
- Major Ethiopia textile build experiences delays
- Cambodia labour abuse claims disputed
- Garment factory tool to improve communication
- RFID adoption among retailers near “tipping point”
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Outdoor performance apparel: peaks, valleys, and green fields
- Global market review of swimwear - forecasts to 2019