Footwear, accessories and sportswear maker Kenneth Cole Productions Inc has swung to a second quarter loss, after lower demand from department stores hurt its wholesale business.

For the three months to 30 June, the New York based company posted a loss of $2.05m, or $0.11 per share, from a net profit of $3.30m, or $0.16 per share, a year earlier.

Quarterly revenues fell 6.5% to $111.2m from $118.9m in the same period last year.

New stores and growth in internet retail helped its consumer direct revenues rise 4.2% to $43.0m, with a 1.3% gain in same- store sales.

But licensing revenues fell 3.3% to $10.3m as the company moved its men's sportswear to a wholesale model, and its wholesale business dropped 13.7% to $57.9m.

Second quarter gross margin was down to 41.4% versus the year-ago rate of 44.3%, which reflects "pressure from the tough market environment," the company said.

Jill Granoff, chief executive officer, added that the firm still sees opportunities on a global basis "to grow across categories, geographies, and distribution channels."

In its outlook, Kenneth Cole said it expects third-quarter earnings of of $0.07 to $0.09 per share and net revenues in the range of $125m to $130.