Kenneth Cole Productions increased its net revenues for 2006 by 3.6 percent to $536.5 million. From the total $429.3 million stemmed from net sales and $44.2 million came from licensing and other revenues. This compares to year-ago figures of $474.1 million and $44.0 million, respectively. However, gross profit slid to $231.8 million from $234.3 million and operating income fell to $37.0 million from $45.4 million. Net income also decreased, going down to $26.8 million from $33.5 million.
During the 4th quarter, the company’s net revenues climbed to $135.0 million from $133.0 million. Operating income for the quarter rose by 11.8 percent to $11.6 million, but gross profit dipped to $61.4 million from $62.2 million. Net income grew to $8.0 million from $7.5 million. During the quarter, wholesale revenues rose by 3.5 percent to $63.9 million. Consumer-direct sales grew slightly to $58.5 million, but comparable store sales were off by 4 percent.
The company has forecast revenues of $124-128 million for the 1st quarter of 2007. It admits that “much work needs to be done” but is optimistic about succeeding especially since it has a “stronger and more experienced” management team.