by Alexandra Steigrad
Posted Wednesday May 4, 2011
From WWD.COM
Kenneth Cole Productions Inc., the New York-based maker of apparel, footwear and accessories, swung to a first-quarter loss due to hefty charges.
The company said Wednesday morning that for the period ended March 31, its net loss totaled $17.2 million, or 94 cents a diluted share, compared with a year-ago profit of $1.8 million, or 10 cents a share. This included one-time charges amounting to $12.5 million.
Net revenue increased 7.3 percent to $117.5 million, from $109.5 million, in the year-ago quarter.
Analysts expected a loss of 21 cents a share on revenues of $112.6 million, according to Yahoo.
"While we’re obviously not pleased with these results, we are dedicated to improving every aspect of our business,” said Kenneth Cole, chairman and interim chief executive officer. “While it’s been necessary to focus on reducing costs, streamlining, and on efficiency building the past few years, we are now also focused on repositioning our business for sustainable growth across all sectors. We also intend to reclaim the leadership position of the brand, not just its social voice, but also its fashion and its product positioning."
The company said it anticipates second-quarter earnings of between two and four cents a share on revenues of $105 to $110 million.
Analysts are looking for first-quarter EPS of a penny on revenues of $106.3 million.
