Kenneth Cole Productions Goes Negative

Seth Jayson, The Motley Fool
Updated

Kenneth Cole Productions (NYS: KCP) reported earnings on Aug. 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Kenneth Cole Productions missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to a loss.


Gross margins were steady, operating margins contracted, and net margins dropped.

Revenue details
Kenneth Cole Productions recorded revenue of $97.3 million. The one analyst polled by S&P Capital IQ hoped for revenue of $107.7 million on the same basis. GAAP reported sales were 4.8% lower than the prior-year quarter's $102.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.03. The two earnings estimates compiled by S&P Capital IQ forecast $0.06 per share. GAAP EPS were -$0.20 for Q2 versus $0.03 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.6%, about the same as the prior-year quarter. Operating margin was -0.2%, 120 basis points worse than the prior-year quarter. Net margin was -3.8%, 440 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $136.5 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $492.5 million. The average EPS estimate is $0.75.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 43 members out of 60 rating the stock outperform, and 17 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Kenneth Cole Productions a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kenneth Cole Productions is hold, with an average price target of $18.00.

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The article Kenneth Cole Productions Goes Negative originally appeared on Fool.com.

Seth Jaysonhad no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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