Kenneth Cole Stays on Its Feet: Fool by Numbers

On Feb. 27, Kenneth Cole Productions (NYSE: KCP  ) released fourth-quarter earnings for the period ended Dec. 31.

  • Revenue for the quarter increased 1.5% to $135 million. While revenue for the wholesale segment was up 3.5%, that was offset by a 4.9% decrease in licensing revenue.
  • Comparative-store sales in the consumer direct segment were down 4% year over year.
  • Kenneth Cole has a stomp-worthy four-star rating in CAPS, our interactive stock database. CAPS also has coverage on competitors like Steve Madden (Nasdaq: SHOO  ) , Polo Ralph Lauren (NYSE: RL  ) , and Skechers (NYSE: SKX  ) .

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$135.0

$133.0

1.5%

Net Profit

$8.0

$7.5

6.9%

EPS

$0.39

$0.37

5.4%

Diluted Shares

20.3

20.4

(0.3%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

45.5%

46.8%

(1.3)

Operating Margin

8.6%

7.8%

0.8

Net Margin

5.9%

5.6%

0.3

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$117.7

$130.1

(9.6%)

Accounts Rec.

$55.2

$52.7

4.8%

Inventory

$46.3

$45.5

1.8%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$36.6

$31.1

17.4%

Long-Term Debt

$0.0

$0.0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

Looks like Kenneth Cole walked out with its cash flow statement; it's nowhere in the press release.

Find out why Fools always follow the money.

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.


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