Kenneth Cole Productions has announced that its net revenues for the first quarter ended March 31 increased by 5.9 percent to $109.5 million. If businesses the company dropped last year are excluded, turnover was up by 9.3 percent.
Increases were reported in all the three segments in which the company operates. Wholesale revenues were up by 1.3 percent to $62.4 million, or by 6.8 percent excluding exited businesses. The consumer direct segment grew by 13.0 percent to $37.0 million, on a comparable store sales increase of 5.6 percent, along with 15 new stores and a double-digit increase in e-commerce. Licensing revenues grew by 12.4 percent to $10.1 million.
The gross margin rose by 7.7 percentage points to 41.6 percent on improved products, reduced promotional activity and good inventory management. The operating income came in at $1.0 million, an improvement over the $12.6 million loss recorded in 2009. Likewise, net income was $1.8 million against a loss of $8.2 million last year.