Kenneth Cole Swings to Quarterly Loss (Updated)

Updated from 4:42 EDT

Kenneth Cole Productions(KCP Quote) swung to a loss in the first quarter, hurt by consumers tightening their purses and inventory cutbacks at retailers.

During the quarter, the company posted a loss of $8.2 million, or 46 cents a share, from a profit of $807,000, or 4 cents, in the year-ago period.

Excluding items, the company lost 41 cents a share. Analysts were expecting a loss of 42 cents a share.

Sales declined 16% to $94.4 million from $112.6 million last year.

Going forward, the company announced that it expects to see some improvement in the second half of the year.

Shares of the shoe and clothing maker were up 8%, to close at $8.77.