Kenneth Cole Productions Inc.’s turnaround continues with its fifth consecutive quarter of positive operating profit.
For the third quarter, the New York-based firm earned a net income of $2 million, up from $186,000 in the same period a year ago.
Earnings per share rose to 11 cents, from 1 cent a year ago, and net revenue grew 15 percent to $119 million.
The results beat analysts’ estimates, which were for EPS of 10 cents on revenue of $115.4 million, as polled by Yahoo Finance.
Wholesale revenue grew 21 percent in the quarter, driven by double-digit growth in men’s and women’s footwear, according to a company statement.
Retail sales increased 8 percent, buoyed by a 6.7 percent increase in comparable-store sales and double-digit growth in e-commerce. Licensing revenue also advanced 11 percent.
Selling, general and administrative expenses as a percent of sales improved by 240 basis points to 40.6 percent, a result of the firm’s streamlining initiatives and expense leverage on the revenue growth.
As a result, third-quarter operating income rose to $2.3 million, from $300,000.
“On a year-to-date basis, we have achieved double-digit revenue growth in each of the company’s operating segments and significant improvement in EPS. Our brands remain strong, and our operations are more efficient,” said Jill Granoff, CEO of Kenneth Cole.
“We are excited by our recent initiatives to accelerate our growth, particularly the launch of Reaction men’s sportswear and the strategic decision to bring our women’s sportswear license in-house,” she added.
Kenneth Cole ended the quarter with cash and cash equivalents of $69.8 million, up from $50 million a year ago.