• 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.