Tuesday, footwear company Kenneth Cole Productions, Inc. (KCP) revealed its preliminary fourth quarter financial results, expecting to report a loss, with revenues declining 5% from the year ago quarter.
The New York-based company said that it expects to report a fourth quarter operating loss, excluding non-operating charges, in the range of $0.20 to $0.30 per share.
On average, four analysts polled by First Call/Thomson Financial expect the company to report a loss of $0.13 per share for the quarter. Analysts' estimate typically excludes special items.
For the fourth quarter, the company expects revenues of $125 million, a 5% decline from the fourth quarter of 2007. Analysts currently expect the company to generate revenue of $125.98 million for the fourth quarter.
Same store sales are expected to decline 11% for the quarter.
The company expects to end the year with approximately $65 million in cash and cash equivalents and no long-term debt.
Year-end inventory is anticipated to be about 10% lower than the prior year's level in anticipation of reduced consumer spending in the first half of the year, and additional inventory reductions are planned over the course of the spring season.
The company has also eliminated around $10 million of existing annual costs through a variety of restructuring initiatives, including a 10% job cuts during the fourth quarter, the closing of its Italy office, and the consolidation of its Tribeca footwear line into other brands.
The company also anticipates incurring non-operating charges of about $0.40 to $0.45 per share in the fourth quarter of fiscal 2008 as a result of these activities, along with charges for asset impairment and losses on investments.
Commenting on the financial results, the company's Chief Executive Officer, Jill Granoff said, "While the early part of 2009 should continue to be challenging due to uncertainty regarding consumer spending and the financial health of the retail industry in general, we are confident that we can demonstrate a successful transition of our business model and show improved results later in the year."
KCP closed Tuesday's regular trading session at $6.21, up $0.04 or 0.65%. However, the stock lost $0.46 or 7.41% in the after-hour trade.
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