Kenneth Cole Productions, Inc. reported that net revenues in the first quarter were $116.8 million, versus the year-ago level of $117.5 million. Wholesale revenues were up 3.0 percent to $76.7 million versus the year-ago period. Consumer Direct revenues decreased 6.7 percent to $31.0 million versus the year-ago period due to the operation of four fewer stores and a comparable store sales decline of 2.0 percent. Licensing revenues in the first quarter declined 6.3 percent to $9.1 million versus the prior year's level due principally to the transition of the women's apparel business to an in-house operation from a licensing model.
Gross profit improved by 140 basis points to 36.9 percent in the first quarter ended March 31, 2012 compared to 35.5 percent in the year-ago period, primarily due to less clearance activity than last year, which was highly promotional to clear excess inventory from store closings.
As a percentage of net revenues, selling, general and administrative expenses (“SG&A”), excluding other charges (severance, store closings, deferred compensation plan liability charges and costs in connection with proposed transaction), decreased 140 basis points to 38.0 percent vs. 39.4 percent versus the year-ago period. SG&A dollars, excluding these other charges, decreased $1.9 million to $44.4 million.
The net loss for the first quarter was $(1.9) million or $(0.10) per share versus a loss of $(17.2) million or $(0.94) per share in the prior year's quarter. The Company noted that last year's loss of $(17.2) million included $12.5 million of other SG&A charges relating to store closings and severance.
The Company ended the quarter with $48.9 million in cash and no long-term debt. Inventory increased 5.9 percent to $45.6 million versus the prior year's level of $43.1 million.
