Tuesday, Kenneth Cole Productions, Inc. (KCP) reported a wider loss for the fourth quarter due to the impact of some charges. On an adjusted basis, however, the company reported earnings that came in line with analysts' estimates.
Net loss for the quarter widened to $51.99 million or $2.88 per share from $12.00 million or $0.67 per share in the comparable period a year-ago.
The adjusted net income for the quarter was $3.79 million or $0.21 per share, compared with net loss of $4.81 million or $0.27 per share in the comparable period a year-ago.
On average, three analysts polled by Thomson Reuters estimated earnings of $0.21 per share. Analysts' estimates typically exclude special items.
Kenneth Cole said that while operating income for the fourth quarter was strong, the company was in a three-year historical cumulative loss position which prompted the requirement of a valuation allowance against the company's deferred tax asset balance which resulted in a non-cash charge of $43.3 million.
The company also recorded impairment charges on certain of its stores and intangible assets of $19.6 million, for total non-cash charges of $62.9 million. As a result of these non-cash charges, the GAAP loss per share widened when compared with the year-ago quarter.
Net revenue for the quarter declined to $109.37 million from $126.58 million a year-ago. According to the company the sales decline was primarily due to the company's planned exit from unprofitable businesses as well as reductions in associated private label programs and off-price distribution.
Division-wise, while net sales declined to $98.49 million from $144.90 million, and licensing and other revenue declined to $10.87 million from $11.67 million in the year-ago quarter.
Total operating expenses including selling, general and administrative expenses, severance expenses, charges towards intangible impairment and asset impairment increased to $64.25 million from $61.08 million in the year-ago quarter.
Net loss for the full year widened to $63.23 million or $3.52 per share from $14.80 million or $0.80 per share in the previous year. Adjusted net loss widened to $6.38 million or $0.36 per share from $3.49 million or $0.19 per share in the previous year.
Full year net revenue declined to $410.40 million from $492.33 million in the previous year.
KCP closed Tuesday's last trade at $12.59, up $0.57 or 4.74%, on a volume of 53 thousand shares on the New York Stock Exchange. In the after hours the stock traded up $0.55 or 4.58%.
For comments and feedback: editorial@rttnews.com