Kenneth Cole Productions had a 15.0 percent increase in net revenues for the second quarter ended June 30, reaching $108.0 million. The gross profit margin climbed by 1.3 percentage points to 43.7 percent on improved product sell-through and good inventory management. The operating income came into the black, hitting $1.1 million, compared with an operating loss of $5.2 million for the same period last year. The net income was $937,000 against a net loss of $3.3 million in 2009.
Sales in the wholesale division were up by 12.8 percent to $52.1 million. Excluding business the company has exited, this would have been a 16.0 percent increase. Retail revenues grew by 16.2 percent to $44.8 million with an 8.4 percent increase in comparable store sales. This segment also got a boost from eight new net stores and double-digit growth in e-commerce. Turnover from licensing rose by 21.1 percent to $11.1 million.
For the third quarter, Kenneth Cole expects sales to grow by 10-12 percent.