NEW YORK, May 2, 2007/ FW/ --- Kenneth Cole Productions reported first quarter net revenues of $129.3 million for the first quarter of 2007, a 5.5% increase compared to $122.6 million during the same period last year.

Operating income grew by 18.7% to $4.3 million versus $3.7 million in last year's first quarter. First quarter earnings per fully diluted share were $0.17 versus the year-ago first quarter earnings of $0.15 per share.

From the same announcement, the company also revealed that it would assume control of its men’s collection sportswear business and plans to commence shipments beginning with the Spring 2008 season.

The collection will be marketed under the Kenneth Cole New York brand and will incorporate a wider range of price points than previously available under that label.

This effort is expected to require approximately $7 million of normal operating costs, which are incremental in fiscal 2007, during which the Company expects to record few, if any, revenues associated with the business.

"We are enthusiastic about men's collection sportswear. This is a unique opportunity to take control of an existing, developed, yet under-penetrated business with significant growth opportunities,” said Chairman and Chief Executive Officer Kenneth Cole in a statement.

The launch of the new menswear collection will coincide with the company’s 25th anniversary and will be promoted with the largest marketing campaign in the company’s history.