Kenneth Cole Productions, Inc. Reports First Quarter Earnings of $0.21

Apr 26, 2001, 01:00 ET from Kenneth Cole Productions, Inc.

    NEW YORK, April 26 /PRNewswire/ -- Kenneth Cole Productions, Inc.
 (NYSE:   KCP) today reported financial results for the first quarter ended March
 31, 2001.  Fully diluted earnings per share for the period were $0.21,
 slightly ahead of the company's revised plan.  Net revenues for the first
 quarter were on plan, increasing 2.7% to $97.2 million from $94.7 million in
 the year-ago first quarter.
     Commenting on these results, Kenneth Cole, President and Chief Executive
 Officer said, "We are confident that our strategy of protecting merchandise
 margins and brand positioning are interests that outweigh the dangers of
 pressing for growth in a challenging environment.  Therefore we took a
 cautious approach to growth in the first quarter given the highly promotional
 retail environment."
     Wholesale revenues for the first quarter decreased 10.3% to $55.1 million
 versus the same quarter last year.  This was more than offset by a first
 quarter sales increase through the Company's consumer-direct operations of
 27.0%, which rose to $36.6 million versus $28.8 million in the year-ago
 period.  The increase in revenues was driven by new retail locations as well
 as several expanded stores, but was offset by comparable store sales that were
 down 5.3%, or approximately $1.2 million .  Licensing revenue continued to
 increase at a strong pace, rising 27.0% in the first quarter of 2001 to
 $5.1 million.
     During the quarter, the company signed a major licensing deal with Louis
 Vuitton Moet Hennessy (Nasdaq: LVMH) to produce fragrances under the Kenneth
 Cole New York and Reaction Kenneth Cole brand names.
     The Company's consolidated inventories on March 31, 2001 rose only 2.2% to
 $49.0 million versus the year-ago level of $48.0 million.  Wholesale
 inventories were down 20.6% to $24.5 million and Consumer Direct inventories
 were up 43.4% to $24.5 million, commensurate with 58% growth in square
 footage.
     "We have been careful to reduce inventory purchasing as sales trends have
 dictated, compromising top-line growth in exchange for maintaining prices and
 profitability.  We remain comfortable with our ability to both achieve our
 short term operating goals while positioning our business for long-term
 growth," concluded Mr. Cole.
     The company also announced that during the quarter, it repurchased 606,700
 shares of stock for approximately $16 million.
 
     About Kenneth Cole Productions, Inc.
     Kenneth Cole Productions, Inc. designs, sources, and markets a broad range
 of footwear, handbags, and accessories under the brand names Kenneth Cole New
 York, Reaction Kenneth Cole, and Unlisted, a Kenneth Cole Production.  The
 company has also granted a wide variety of third party licenses for the
 production of men's and women's apparel, timepieces, underwear, and several
 other accessory categories.  The company's products are distributed through
 department stores, better specialty stores, and company-owned retail stores as
 well as direct to consumer catalogs and e-commerce.
 
     Forward-Looking Statement Disclosure
     The statements contained in this release, which are not historical facts,
 may be deemed to constitute "forward-looking statements" within the meaning of
 the Private Securities Litigation Reform Act of 1995.  Actual future results
 might differ materially from those projected in such statements due to a
 number of risks and uncertainties, including but not limited to, demand and
 competition for the company's products, the ability to enter into new product
 license agreements, changes in consumer preferences or fashion trends, delays
 in anticipated store openings, and changes in the Company's relationships with
 vendors and other resources.  The forward looking statements contained herein
 are also subject to other risks and uncertainties that are described in the
 Company's reports and registration statements filed with the Securities and
 Exchange Commission.
 
                         Kenneth Cole Productions, Inc.
 
 
     (In thousands, except                                 Quarter Ended
      per share amounts)                            March 31,      March 31,
                                                         2001           2000
 
     Net sales                                       $ 92,066       $ 90,627
 
     Licensing revenue                                  5,124          4,036
 
     Total revenue                                     97,190         94,663
 
     Gross profit                                      43,756         43,257
 
     Selling, general & administrative                 37,304         31,103
 
     Operating income                                   6,452         12,154
 
     Interest income                                    1,013            802
 
     Income before taxes                                7,465         12,956
 
     Income tax expense                                 2,911          5,182
 
     Net income                                         4,554          7,774
 
 
     Net income per share: Basic                         $.22           $.37
 
     Net income per share: Diluted                       $.21           $.35
 
     Average shares outstanding: Basic             20,453,000     20,771,000
     Average shares outstanding: Diluted           21,540,000     22,058,000
 
     Balance Sheet Data:                            March 31,   December 31,
                                                         2001           2000
 
     Working Capital                                  $91,788       $103,768
     Cash                                             $44,927        $74,608
     Inventory                                        $49,011        $42,361
     Total Assets                                    $200,129       $212,370
 
     Debt and advances due under
      Revolving credit Facility                            $0             $0
 
     Total Shareholders' Equity                      $134,364       $145,636
 
 
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SOURCE Kenneth Cole Productions, Inc.
    NEW YORK, April 26 /PRNewswire/ -- Kenneth Cole Productions, Inc.
 (NYSE:   KCP) today reported financial results for the first quarter ended March
 31, 2001.  Fully diluted earnings per share for the period were $0.21,
 slightly ahead of the company's revised plan.  Net revenues for the first
 quarter were on plan, increasing 2.7% to $97.2 million from $94.7 million in
 the year-ago first quarter.
     Commenting on these results, Kenneth Cole, President and Chief Executive
 Officer said, "We are confident that our strategy of protecting merchandise
 margins and brand positioning are interests that outweigh the dangers of
 pressing for growth in a challenging environment.  Therefore we took a
 cautious approach to growth in the first quarter given the highly promotional
 retail environment."
     Wholesale revenues for the first quarter decreased 10.3% to $55.1 million
 versus the same quarter last year.  This was more than offset by a first
 quarter sales increase through the Company's consumer-direct operations of
 27.0%, which rose to $36.6 million versus $28.8 million in the year-ago
 period.  The increase in revenues was driven by new retail locations as well
 as several expanded stores, but was offset by comparable store sales that were
 down 5.3%, or approximately $1.2 million .  Licensing revenue continued to
 increase at a strong pace, rising 27.0% in the first quarter of 2001 to
 $5.1 million.
     During the quarter, the company signed a major licensing deal with Louis
 Vuitton Moet Hennessy (Nasdaq: LVMH) to produce fragrances under the Kenneth
 Cole New York and Reaction Kenneth Cole brand names.
     The Company's consolidated inventories on March 31, 2001 rose only 2.2% to
 $49.0 million versus the year-ago level of $48.0 million.  Wholesale
 inventories were down 20.6% to $24.5 million and Consumer Direct inventories
 were up 43.4% to $24.5 million, commensurate with 58% growth in square
 footage.
     "We have been careful to reduce inventory purchasing as sales trends have
 dictated, compromising top-line growth in exchange for maintaining prices and
 profitability.  We remain comfortable with our ability to both achieve our
 short term operating goals while positioning our business for long-term
 growth," concluded Mr. Cole.
     The company also announced that during the quarter, it repurchased 606,700
 shares of stock for approximately $16 million.
 
     About Kenneth Cole Productions, Inc.
     Kenneth Cole Productions, Inc. designs, sources, and markets a broad range
 of footwear, handbags, and accessories under the brand names Kenneth Cole New
 York, Reaction Kenneth Cole, and Unlisted, a Kenneth Cole Production.  The
 company has also granted a wide variety of third party licenses for the
 production of men's and women's apparel, timepieces, underwear, and several
 other accessory categories.  The company's products are distributed through
 department stores, better specialty stores, and company-owned retail stores as
 well as direct to consumer catalogs and e-commerce.
 
     Forward-Looking Statement Disclosure
     The statements contained in this release, which are not historical facts,
 may be deemed to constitute "forward-looking statements" within the meaning of
 the Private Securities Litigation Reform Act of 1995.  Actual future results
 might differ materially from those projected in such statements due to a
 number of risks and uncertainties, including but not limited to, demand and
 competition for the company's products, the ability to enter into new product
 license agreements, changes in consumer preferences or fashion trends, delays
 in anticipated store openings, and changes in the Company's relationships with
 vendors and other resources.  The forward looking statements contained herein
 are also subject to other risks and uncertainties that are described in the
 Company's reports and registration statements filed with the Securities and
 Exchange Commission.
 
                         Kenneth Cole Productions, Inc.
 
 
     (In thousands, except                                 Quarter Ended
      per share amounts)                            March 31,      March 31,
                                                         2001           2000
 
     Net sales                                       $ 92,066       $ 90,627
 
     Licensing revenue                                  5,124          4,036
 
     Total revenue                                     97,190         94,663
 
     Gross profit                                      43,756         43,257
 
     Selling, general & administrative                 37,304         31,103
 
     Operating income                                   6,452         12,154
 
     Interest income                                    1,013            802
 
     Income before taxes                                7,465         12,956
 
     Income tax expense                                 2,911          5,182
 
     Net income                                         4,554          7,774
 
 
     Net income per share: Basic                         $.22           $.37
 
     Net income per share: Diluted                       $.21           $.35
 
     Average shares outstanding: Basic             20,453,000     20,771,000
     Average shares outstanding: Diluted           21,540,000     22,058,000
 
     Balance Sheet Data:                            March 31,   December 31,
                                                         2001           2000
 
     Working Capital                                  $91,788       $103,768
     Cash                                             $44,927        $74,608
     Inventory                                        $49,011        $42,361
     Total Assets                                    $200,129       $212,370
 
     Debt and advances due under
      Revolving credit Facility                            $0             $0
 
     Total Shareholders' Equity                      $134,364       $145,636
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X31326505
 
 SOURCE  Kenneth Cole Productions, Inc.