The Gory Details on Kenneth Cole Productions' Double Miss

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

The 10-second takeaway
For the quarter ended March 31 (Q1), Kenneth Cole Productions missed estimates on revenues and missed expectations on earnings per share.

Compared with the prior-year quarter, revenue dropped slightly and GAAP loss per share contracted.


Margins improved across the board.

Revenue details
Kenneth Cole Productions reported revenue of $116.8 million. The two analysts polled by S&P Capital IQ expected to see a top line of $125.5 million on the same basis. GAAP reported sales were 0.5% lower than the prior-year quarter's $117.5 million.

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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 -$0.06. The three earnings estimates compiled by S&P Capital IQ predicted -$0.03 per share. GAAP EPS were -$0.10 for Q1 versus -$0.94 per share for the prior-year quarter.

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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 36.9%, 140 basis points better than the prior-year quarter. Operating margin was -1.1%, 280 basis points better than the prior-year quarter. Net margin was -1.6%, 1,300 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $108.8 million. On the bottom line, the average EPS estimate is $0.06.

Next year's average estimate for revenue is $514.4 million. The average EPS estimate is $0.79.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 43 members out of 63 rating the stock outperform, and 20 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 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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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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