Donna Karan International Inc (NYSE: DK) today reported improved second quarter results, although the company's retail segment performed poorly with like-for-like sales down 13.1 per cent.

Second Quarter

Net revenues for the second quarter of 2000 were $120.5m compared to $122m in 1999, a decrease of 1.2 per cent.

Net loss in the second quarter of 2000 was $7m, or $0.32 per share on a diluted basis, compared to a net loss of $7.9m in 1999, or $0.36 per share on a diluted basis, an 11.3 per cent improvement.

Six Months

Net revenues for the first six months of 2000 were $293.3m compared to $282.8m in 1999, an increase of 3.7 per cent.
Net loss in the first six months of 2000 was $3.7m, or $0.17 per share on a diluted basis, compared to a net loss of $5.7m in 1999, or $0.26 per share on a diluted basis, a 36.0 per cent improvement.

John D Idol, CEO, said: "We are encouraged by the improvement in the company's financial results. In our wholesale segment we achieved our targeted sales, which included a decrease resulting from the continued transition of our Japanese business from wholesale to primarily a licensing business. Overall, wholesale revenues decreased 5.4 per cent in the second quarter of 2000 compared to the prior year. Exclusive of sales to Japan, the wholesale revenues decreased 2.5 per cent for the second quarter and increased by 3 per cent for the six-month period.

"We were, however, disappointed with the performance of our retail segment. The outlet store business continued to be difficult and, including store closings, revenues decreased 16.5 per cent in the second quarter.

"On a comparable store basis, outlet revenues decreased 13.1 per cent. Substantially offsetting the decrease in the outlet store business was a 52 per cent increase in revenues in our full-price freestanding store business. On a comparable store basis, our full-price stores experienced a 5.9 per cent decrease in net revenues for the second quarter. We are encouraged by the performance of our larger store formats, and we plan to continue our full-price store roll out by initially concentrating in major urban markets with similar stores."

Donna Karan International Inc is one of the leading international fashion design houses. The company designs, contracts for the manufacture of, markets, retails, and distributes collections of men's and women's clothing, sportswear, accessories and shoes under the Donna Karan New York, DKNY, DKNY Jeans, and DKNY Active brand names.