US fashion company Kenneth Cole Productions Inc has realized a 6.7 percent profit rise to $8 million (£4.09 million) in the fourth quarter on sales up 1.5 percent. Total sales rose modestly to $135 million, up from $133 million during the same period last year. Licensing revenues declined as a percentage of the firms total sales during the quarter. Wholesale gross margins also decreased, bringing the total gross margin rate down to 45.5 percent, compared with 46.8 percent in the corresponding quarter last year.
“While we are pleased that we were able to achieve our financial plan, increase our operating margin and further enhance our brands, we recognize that much work remains to be done,” founding chairman and chief executive Kenneth Cole said in a statement. “We look forward to achieving continued future progress with a stronger and more experienced management team than ever before.” Earnings for the year fell 20 percent to $26.8 million on sales up 3.6 percent to $536.5 million. The company said that it expects earnings for the first quarter 2007 to be between 15 and 18 cents per diluted share. Estimated sales for the quarter are to be between $124 million and $128 million.
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