America’s Candie’s Inc, that licenses trademarks on a variety of women’s footwear, apparel, and accessories, has reported a net income of $603,000 for the third quarter of financial year 2004, ended October 31, compared with a net loss of $1.9 million in the same period last year. Licensing income for the quarter surged by 50.7% to $2.7 million from $1.8 million in the same period in 2003.

Chairman and CEO Neil Cole said, "Our third quarter numbers begin to reflect the potential profitability of the licensing business under our new brand management model. We are very excited about the recently announced retail direct license with Kohl's for Candie's, and have completed the transition of Bongo jeans wear to our new licensee. These two significant licenses, when added to the potential that we see for Badgley Mischka, provide a solid platform for sustained growth in the future."

For the nine months ended October 31, 2004, the company reported consolidated net income of $1.2 million versus a loss of $4.9 million in the prior year. Licensing income increased nearly 40% to $6.7 million from $4.8 million in the previous year and operating expenses decreased from $29.3 million to $13.7 million.

The company has also recently given Kohl’s Corp. exclusive rights to its clothing and accessory line from the beginning of 2007, in a long-term licensing agreement. Until the end of 2006 other specialty and department stores will stock Candie’s handbags and footwear under existing deals. As the first part of the deal, Kohl’s will introduce Candie’s apparel into its junior and girls departments in autumn 2005.

Licensing changes have also been made to Steven Madden Ltd, designer, manufacturer and wholesaler of fashion footwear for women, men and children, to reflect the deal with Kohl’s. The original deal from May 2003 gave the company the exclusive right to design, manufacture and distribute Candie’s branded footwear. From now on Steven Madden Ltd will continue doing so until the end of 2006 across stores including Kohl’s.

Candie’s also licences Bongo, Badgfley, Mischka clothing, footwear and accessories and operates shoe supplier Brightstar Footwear Inc.

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