Kenneth Cole Q2 Weaker Than Expected

While analysts expected Kenneth Cole Productions Inc. to turn a profit in the second quarter, the firm ended the period in the red.
For the period ended June 30, the firm, which is in the process of going private at $15.25 a share, lost 20 cents a share, versus a net income of 3 cents in the same period a year ago.
The bottom line was hit by costs associated with the proposed acquisition, to be led by chairman and chief creative officer Kenneth Cole, as well as one-time transition costs relating to changing distribution centers.
Adjusted net loss was 3 cents, but analysts polled by Yahoo Finance were expecting net income of 6 cents.
Net sales for the quarter slid 4.8 percent to $97.3 million. Analysts were expecting revenue to total $107.7 million. Wholesale revenues fell 3.3 percent; consumer-direct revenues decreased 6.1 percent; and comparable-store sales slipped 2.7 percent.
Kenneth Cole ended the quarter with $49 million in cash and no long-term debt. Inventory increased 20.3 percent to $49.7 million.

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