Bad investment pushes Kenneth Cole to 3Q loss

NEW YORK - Shoe and handbag maker Kenneth Cole Productions Inc. said Tuesday it swung to a $1.6 million loss in the third quarter as investments soured despite an increase in revenue and adjusted earnings that beat Wall Street expectations.

Losses totaled 9 cents per share in the quarter ended Sept. 30, down from a profit of $3.4 million, or 17 cents per share, in the third-quarter last year.

Revenue edged up 1 percent to $132.1 million.

Without the one-time charge on the investment loss, the company posted a profit of 9 cents per share.

Analysts polled by Thomson Reuters expected, on average, earnings of 8 cents per share. Those estimates typically exclude one-time items.

Sales of clothing sold directly to consumers at stores open more than a year grew 2.1 percent, helping lift consumer-direct sales 6.9 percent to $42.6 million.

Wholesale sales shrank 1.6 percent to $77.6 million. Licensing revenue grew 2.4 percent to $11.9 million.

"We are pleased that we achieved our targets for sales and operating profitability for the quarter, despite current economic conditions," said Chairman Kenneth Cole in a statement.

Shares of the company added 19 cents to $11.41 in aftermarket trading, after closing the regular session down 9.5 percent at $11.25.

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