DALLAS, Apr 27, 2006 / --- Due to a slower than anticipated start-up of a new third-party distribution center that shifted approximately $7 million of shipments from March into April, Kenneth Cole Productions reported a 5.6% decrease in revenue for the first quarter of 2006 posting $122.6 million on its financial statement released today.

According to the same release, consumer direct comparable store sales were also lower than expected. First quarter earnings per fully-diluted share were $0.15, versus the year ago quarter earnings of $0.37 per share.

The Company noted that had all wholesale orders shipped as planned, sales and earnings results would have been in-line with its previous guidance for revenues of $127 to $132 million and earnings of $0.20 to $0.22 per share.

But although the financial results were not very stellar, the company maintains an annual guidance for EPS of $1.28 to $1.38.

Chairman and Chief Executive Officer Kenneth Cole said, "Our wholesale and licensing businesses remain healthy, as indicated by a strong backlog as well as solid performance from a wide range of categories of licensed products. We believe this illustrates, in large part, the ongoing successful implementation of our brand elevation strategy,” said in statement.

"Our consumer direct business, however, remains very challenging. We are putting corrective actions into place to address the disappointing performance of our retail stores, including the adjustment of the range of various products and their respective price points,” he added.