US: Wholesale surge boosts Kenneth Cole Q4 profit
- Q4 net profit of US$8m, versus $2.7m loss
- Revenues up 8.6% to $131.2m
- Gross margins fall 230 bps to 41.2%
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.
The company was boosted in particular by its Kenneth Cole New York women’s sportswear and Reaction men’s sportswear ranges, which were responsible for more than 75% of the revenue increase.
However, consumer direct revenues were down 16.6% thanks to the closing of several unproductive stores and a comparable store sales decline of 5%.
Licensing revenues were up 10%, but gross margins fell 230 basis points to 41.2%, impacted by higher sourcing costs and a shift in the revenue mix towards wholesale.
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New York designer Kenneth Cole Productions has swung to a second-quarter net loss on the back of lower sales and one-off costs....
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