Kenneth Cole Productions’ net revenue increased by 16.6 percent during the 2nd quarter ended June 30 to a record level of $113.1 million, while operating income rose by 17.3 percent to $11.0 million. Consumer-direct revenues for the quarter went up by 13.5 percent to $44.8 million, with store sales rising by 6.4 percent on a comparable basis, while wholesale revenues rose by 21.2 percent to $58.9 million. Licensing revenue increased by 5.7 percent to $9.3 million, or up 15 percent excluding one-time gains.
During the quarter the company completed a move to a third-party distribution center in a bid to create cost savings and operational flexibility. Kenneth Cole, chairman and CEO, says the company surpassed its operational goals and that he is “optimistic” about the 2nd half of the year. The company had a flurry of management movement recently. Following the appointment of Michael Newman as vice chairman, David Edelman has been promoted to chief financial officer and Carol Sharpe has been appointed as senior vice president of consumer direct sales.