Nov 3, 2009
Kenneth Cole posts surprise profit
Nov 3, 2009
Nov 3 (Reuters) - U.S. shoe and clothing maker Kenneth Cole Productions Inc (KCP.N) posted a surprise quarterly profit, helped by effective inventory controls and lower costs, but forecast fourth-quarter results below market expectations.
The company forecast operating earnings of 4 cents to 8 cents a share, on revenue of $107 million to $112 million for the fourth quarter.
Analysts on average were expecting earnings of 9 cents a share, before items, on revenue of $118.5 million, according to Thomson Reuters I/B/E/S.
For the third quarter, the company posted a profit of $186,000, or 1 cent a share, compared with a loss of $1.6 million, or 9 cents a share, a year earlier. Revenue at the company, which posted losses in the previous three quarters, fell 21 percent to $103.8 million.
Analysts expected the company to post a loss of 1 cent a share, on revenue of $104.2 million.
Selling, general and administrative expenses declined 14 percent to $44.6 million.
Shares of the New York City-based company rose 4 percent to $9.30 in trading after the bell. They closed at $8.91 Tuesday 3 November on the New York Stock Exchange. (Reporting by Renju Jose; Editing by Anne Pallivathuckal)
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