May 5, 2010
Kenneth Cole swings to profit, sees second quarter above Street
May 5, 2010
(Reuters) - U.S. shoe and clothing maker Kenneth Cole Productions Inc (KCP.N) swung to a first-quarter profit, helped by better gross margins, same-store sales and growth in e-commerce, and forecast better-than-expected second-quarter results.
Kenneth Cole boutique on Sloane Street, London - Photo: PixelFormula
The New York City-based company earned $1.8 million, or 10 cents a share, compared with a net loss of $8.2 million, or 46 cents a share, a year ago.
Excluding items, it earned 5 cents a share. Revenue rose 6 percent to $109.5 million.
Gross margin for the quarter grew 770 basis points to 41.6 percent while same-store sales grew 5.6 percent.
The company, whose products are sold through department stores, specialty stores, company-owned retail stores and its e-commerce website, forecast second-quarter earnings of breakeven to 3 cents a share.
For the second quarter, it sees revenue growing 7 percent to 10 percent, implying a revenue of $100.5 million to $103.3 million.
Analysts were expecting a second-quarter loss of 5 cents a share on revenue of $98.4 million, according to Thomson Reuters I/B/E/S.
Shares of the company closed at $13.01 Tuesday 4 May on the New York Stock Exchange.
(Reporting by Vidya Lakshmi in Bangalore; Editing by Ratul Ray Chaudhuri)
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