DALLAS, Aug 1, 2006 / --- Last week, when Kenneth Cole Productions, Inc. posted its financial statement, the stockholders held a small parade. Reporting record revenues of $135.3 million for the first quarter of 2006, an increase of 13.3% during the same period last year, the prognosis was the company was ‘very healthy’ financially.

Then, yesterday, Kenneth Cole announced that it not hold a catwalk show this coming Spring 2007 New York fashion season slated from Sep 8 – 15, 2006. Instead, it will be hosting a formal editor’s presentation at their Westside studios on October 18 and 19. Retailers and buyers will be invited to the presentation on October 17.

And, that brought rain to the fashionistas’ parade anticipating Kenneth Cole to open the New York season as it had done so during the past 4 years.

According to the statement released yesterday, the reason for canceling its customary runway show was part of the company’s efforts in repositioning the brand.

“As we continue the repositioning of our brands, it is our belief that this approach will allow for more direct interactions, and for us to tailor the presentation to the individual interests of our guests,” the statement said.

This is in line with Chairman & CEO Kenneth Cole’s comments in the company’s financial report, wherein Cole said, “We believe we are making real progress in our business and brand positioning and are very comfortable with the path we are taking. Certain elements of our repositioning are taking longer than we initially thought, but I am confident we will be successful.”

Because although net revenues is up at $135,261 million for the second quarter of 2006, from $119,335 million during the same period last year, net income was down to $6,487 million from $7,708 million.

In terms of shares, net income for basic share is down to $0.32 per share this quarter compared to $0.39 per share during the same period last year.

Still, everything is up and up with second wholesale revenues at $83.7 million, up 31.8% versus the prior year's level of $63.5 million and licensing revenue for the second quarter increased by 3.3% to $10.4 million versus $10.1 million in the same quarter of the prior year.

Yet, consumer direct revenues for the second quarter suffered, posting a decrease of 10.1% to $41.2 million versus $45.8 million in the same quarter last year, with a comparable store sales decline of 13.2% versus the year-ago quarter.

Nevertheless, the company’s performance though not as stellar as it seems is still on the very healthy side of black.