9
<PAGE>
                                   
                  SECURITIES AND EXCHANGE COMMISSION
                                   
                        Washington, D.C. 20549
                                   
                               Form 10-Q
                                   
(X)  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                         EXCHANGE ACT OF 1934
                                   
           For the quarterly period ended September 30, 1998
                                   
                                   
    (  )  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                    SECURITIES EXCHANGE ACT OF 1934
                                   
                    Commission File Number  1-13082
                                   
                    KENNETH COLE PRODUCTIONS, INC.
         (Exact name of registrant as specified in its charter)
                                   
                 New York                           13-3131650
      (State or other jurisdiction of             (I.R.S. Employer
       incorporation or organization)            Identification Number)

        152 West 57th Street, New York, NY                  10019
     (Address of principal executive offices)             (Zip Code)

   Registrant's telephone number, including area code (212) 265-1500
                                   
Indicate by check mark whether the registrant (1) has filed all reports
required  to be filed by Section 13 or 15(d) of the Securities Exchange
Act  of 1934 during the preceding 12 months (or for such shorter period
that  the  registrant was required to file such reports), and  (2)  has
been subject to such filing requirements for the past 90 days.  Yes (X)
No (  )

Indicate the number of shares of each of the issuer's classes of common
stock, as of the latest practicable date:

                     Class                     November 10, 1998

     Class A Common Stock ( $.01 par value)        7,259,563
     Class B Common Stock ( $.01 par value)        5,785,398

<PAGE>
                                   
                    Kenneth Cole Productions, Inc.
                             Index to 10-Q


Part I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

     Consolidated Balance Sheets as of September 30, 1998 and
     December 31, 1997 .................................................... 3

     Consolidated Statements of Income for the three month and nine month
     periods ended September 30, 1998 and 1997 ............................ 5

     Consolidated Statement of Changes in Shareholders' Equity for the nine
     month period ended September 30, 1998 ................................ 6

     Consolidated Statements of Cash Flows for the nine month periods
     ended September 30, 1998 and 1997 .................................... 7

     Notes to Consolidated Financial Statements ........................... 8

Item 2. Management's Discussion and Analysis of Results of Operations
     Financial Condition and Results of Operations......................... 10

Item 3. Quantitative and Qualitative Disclosure About Market Risk ......... 15

Part II. OTHER INFORMATION

Item 1. Legal Proceedings ................................................. 16

Item 2. Changes in Securities and Use of Proceeds ......................... 16

Item 3. Defaults Upon Senior Securities ................................... 16

Item 4. Submission of Matters to a Vote of Security Holders ............... 16

Item 5. Other Information ................................................. 16

Item 6. Exhibits and Reports on Form 8-K .................................. 16

Signatures ................................................................ 17

Index of Exhibits.........................................................  18

<PAGE>
PART I - FINANCIAL INFORMATION
Item 1.
<TABLE>
            Kenneth Cole Productions, Inc. and Subsidiaries
                                   
                      Consolidated Balance Sheets
<CAPTION>                                   
                                                               
                                               September 30,   December 31,
                                                   1998            1997
                                                (Unaudited)
<S>                                           <C>             <C>          
Assets                                                        
Current assets:                                               
Cash                                           $  1,314,000    $  8,803,000
Due from factors                                 29,502,000      23,292,000
Accounts receivable, net                          4,975,000       3,864,000
Inventories                                      36,399,000      23,365,000
Prepaid expenses and other current assets           999,000       1,420,000
Deferred taxes                                    1,135,000       1,135,000
                                               ------------    ------------
Total current assets                             74,324,000      61,879,000
                                                             
Property and equipment                                       
Furniture and fixtures                            7,137,000       5,513,000
Machinery and equipment                           4,519,000       3,862,000
Leasehold improvements                           10,098,000       8,217,000
                                               ------------    ------------
                                                 21,754,000      17,592,000
Less accumulated depreciation and amortization    7,552,000       5,381,000
                                               ------------    ------------ 
Net property and equipment                       14,202,000      12,211,000
                                                             
Other Assets:                                                
Deposits and deferred income taxes                1,734,000       1,876,000
Deferred compensation                             3,011,000       1,949,000
                                               ------------    ------------ 
Total other assets                                4,745,000       3,825,000
                                               ------------    ------------ 
Total assets                                   $ 93,271,000    $ 77,915,000
                                               ============    ============
</TABLE>                                   
     See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>                                   
            Kenneth Cole Productions, Inc. and Subsidiaries
                                   
                Consolidated Balance Sheets (continued)
<CAPTION>

                                               September 30,   December 31,
                                                   1998            1997
                                                (Unaudited)
<S>                                           <C>             <C>             
Liabilities and shareholders' equity            
Current liabilities:                           
Accounts payable                               $ 12,183,000    $  9,837,000
Accrued expenses and other current liabilities    2,806,000       3,147,000
Advances due under revolving credit facility        998,000    
Income taxes payable                              2,493,000       1,694,000
Deferred license income                             623,000         252,000
                                               ------------    ------------
Total current liabilities                        19,103,000      14,930,000
                                                
Deferred rent payable                             1,093,000         909,000
Deferred income tax                                 387,000         387,000
Deferred compensation                             3,011,000       1,949,000
                                                
Commitments and Contingencies                   
                                                
Shareholders' equity:                           
Preferred stock, par value $1.00, 1,000,000 
  shares authorized, none outstanding                
Class A common stock, par value $.01,
  20,000,000 shares authorized, 7,609,029
  issued and 7,259,029 outstanding in 1998 and 
  7,410,160 outstanding in 1997                      76,000          74,000
Class B common stock, par value $.01,                                          
  6,000,000 shares authorized,                    
  5,785,398 outstanding                              58,000          58,000
Additional paid-in capital                       22,276,000      19,684,000
Accumulated other comprehensive income               76,000          90,000
Retained earnings                                52,159,000      39,834,000
                                               ------------    ------------
                                                 74,645,000      59,740,000
Cost of treasury stock                           (4,968,000)   
                                               ------------    ------------
Total shareholders' equity                       69,677,000      59,740,000
                                               ------------    ------------
Total liabilities and shareholders' equity     $ 93,271,000    $ 77,915,000
                                               ============    ============
</TABLE>
     See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>                                   
            Kenneth Cole Productions, Inc. and Subsidiaries
                                   
                   Consolidated Statements of Income
                              (Unaudited)
<CAPTION>
                                   
                           Three Months Ended            Nine Months Ended
                              September 30                  September 30
                            1998        1997             1998        1997
<S>                   <C>           <C>            <C>           <C>    
Net sales              $ 62,010,000  $ 50,287,000   $162,370,000  $135,549,000
Cost of goods sold       36,512,000    29,178,000     95,569,000    82,847,000
                       ------------  ------------   ------------  ------------
Gross profit             25,498,000    21,109,000     66,801,000    52,702,000
                                                         
Licensing and other                                      
income                    2,294,000     1,726,000      5,741,000     3,994,000
                                                              
Selling, general and                                     
administrative and                                      
shipping and                                            
warehousing              18,415,000    14,677,000     52,498,000    41,596,000
                       ------------  ------------   ------------  ------------
Operating income          9,377,000     8,158,000     20,044,000    15,100,000
                                                         
Interest (income)                                        
expense, net                (96,000)       39,000       (328,000)      238,000
                       ------------  ------------   ------------  ------------
Income before provision                                  
for income taxes          9,473,000     8,119,000     20,372,000    14,862,000
                                                                      
Provision for income                                                  
taxes                     3,742,000     3,248,000      8,047,000     5,945,000
                       ------------  ------------   ------------  ------------
Net income             $  5,731,000  $  4,871,000   $ 12,325,000  $  8,917,000
                       ============  ============   ============  ============
                                                              
                                                              
Earnings per share:                                           
      Basic            $        .43  $        .37   $        .93  $        .68
      Diluted          $        .42  $        .36   $        .90  $        .66
                                                               
Shares used to compute                                         
earnings per share:                                             
      Basic              13,268,000    13,166,000     13,281,000    13,152,000
      Diluted            13,633,000    13,544,000     13,742,000    13,600,000
               
</TABLE>                                                                     
     See accompanying notes to consolidated financial statements.
<PAGE>                                   
<TABLE>                                   
                 Kenneth Cole Productions, Inc. and Subsidiaries
            Consolidated Statement of Changes in Shareholders' Equity
                                   (Unaudited)

<CAPTION>                                               
                           Class A                Class B       
                        Common Stock           Common Stock     Additional
                       Number                 Number              Paid-in
                      of shares   Amount    of shares   Amount    Capital
                                                                
<S>                  <C>         <C>       <C>        <C>       <C>  
Shareholders' equity  
 January 1, 1998      7,410,160   $ 74,000  5,785,398  $ 58,000  $19,684,000
                                                
Net Income                                      
                                                
Foreign Currency                                       
 translation adjustment

Comprehensive income

Exercise of stock options 
 including tax benefit  198,869      2,000                         2,592,000 

Stock repurchase
                     -------------------------------------------------------
Shareholders' equity         
 September 30, 1998   7,609,029   $ 76,000  5,785,398  $ 58,000  $22,276,000
                     ======================================================= 
</TABLE>
<PAGE>
<TABLE>
<CAPTION>                                                     
                      Accumulated               Treasury   Stock
                         Other                             
                     Comprehensive Retained    Number         
                        Income     Earnings   of Shares Amount        Total
<S>                   <C>       <C>         <C>       <C>          <C>     
Shareholders' equity  
 January 1, 1998       $ 90,000  $39,834,000                        $59,740,000
                                                      
Net Income                        12,325,000                         12,325,000
                                                      
Foreign Currency       
 translation adjustment (14,000)                                        (14,000)
                                                                    -----------
Comprehensive income                                                 12,311,000

Exercise of stock options                                       
 including tax benefit                                                2,594,000

Stock repurchase                             (350,000) $(4,968,000)  (4,968,000)
                       --------------------------------------------------------
Shareholders' equity         
 September 30, 1998    $ 76,000  $52,159,000 (350,000) $(4,968,000) $69,677,000 
                       ========================================================
</TABLE>         
         See accompanying notes to  consolidated financial statements.
<PAGE>                                        
                                        
                                        
<TABLE>                                                                       
            Kenneth Cole Productions, Inc. and Subsidiaries
           Consolidated Statements of Cash Flows (Unaudited)
<CAPTION>                                   
                                                        Nine Months Ended
                                                           September 30
                                                        1998           1997
<S>                                                <C>           <C> 
Cash flows from operating activities                    
Net income                                          $ 12,325,000  $  8,917,000
Adjustments to reconcile net income to net cash
 (Used in) provided by operating activities:
  Depreciation and amortization                        2,171,000     1,414,000
  Amortization of deferred compensation                                 69,000
  Provision for doubtful accounts                        100,000        32,000
  Changes in assets and liabilities:                      
   Increase in due from factors                       (6,210,000)   (9,903,000)
   Increase in accounts receivable                    (1,211,000)     (483,000)
   (Increase) decrease in inventories                (13,034,000)    1,640,000
   Decrease in prepaid expenses and other  
     current assets                                      421,000        81,000
   Increase in deposits                                 (920,000)     (804,000)
   Increase (decrease) in accounts payable             2,346,000    (2,946,000)
   Increase in income taxes payable                    1,893,000     1,806,000
   Increase in accrued expenses and other   
     current liabilities                                  30,000     1,904,000
   Increase in other non-current liabilities           1,246,000       785,000
                                                    ------------  ------------ 
Net cash (used in) provided by operating activities     (843,000)    2,512,000
                               
Cash flows from investing activities                    
Acquisition of property and equipment, net            (4,162,000)   (2,774,000)
                                                    ------------  ------------ 
Net cash used in investing activities                 (4,162,000)   (2,774,000)
                                         
Cash flows from financing activities                    
Proceeds from revolving line of credit, net              998,000       810,000
Proceeds from exercise of stock options                1,500,000       263,000
Repayment of long-term debt                                            (44,000)
Treasury shares acquired                              (4,968,000)
                                                    ------------  ------------  
Net cash (used in) provided by  financing activities  (2,470,000)    1,029,000  
Effect of exchange rate changes on cash                  (14,000)       59,000
                                                    ------------  ------------
Net (decrease) increase in cash                       (7,489,000)      826,000
Cash, beginning of period                              8,803,000     1,626,000
                                                    ------------  ------------
Cash, end of period                                 $  1,314,000  $  2,452,000
                                                    ============  ============
Supplemental disclosures of cash flow information
Cash paid during the period for:                        
Interest                                            $     23,000  $     79,000
Income taxes                                        $  6,154,000  $  4,138,000
</TABLE>                                                                      
      See accompanying notes to consolidated financial statements.
<PAGE>                                   
            Kenneth Cole Productions, Inc. and Subsidiaries
              Notes to Consolidated Financial Statements
                              (Unaudited)
                                   
1.   Basis of Presentation

The accompanying unaudited consolidated financial statements of Kenneth
Cole Productions, Inc. ("the Company") have been prepared in accordance
with  generally  accepted accounting principles for  interim  financial
information.   Accordingly, they do not include all of the  information
and  footnotes required by generally accepted accounting principles for
complete  financial statements.  The data contained in these  financial
statements  are  unaudited  and are subject  to  year  end  adjustment;
however,  in the opinion of management, all adjustments (consisting  of
normal recurring accruals) considered necessary for a fair presentation
have  been  included.  Operating results for the three and  nine  month
periods ended September 30, 1998 are not necessarily indicative of  the
results that may be expected for the year ended December 31, 1998.  For
further information, refer to the consolidated financial statements and
footnotes thereto included in the Company's annual report on Form  10-K
for the year ended December 31, 1997.

The  consolidated balance sheet at December 31, 1997 was  derived  from
the audited financial statements.

2.   Stock Repurchase

On  August  13, 1998, the Board of Directors of the Company  authorized
management to repurchase up to 500,000 shares of the Company's Class  A
Common  Stock.    As  of  September  30,  1998,  350,000  shares   were
repurchased, in the open market, at an aggregate price of $4,968,000.

3.   Earnings Per Share

The Company adopted Statement of Financial Accounting Standards No. 128
"Earnings  Per Share" ("SFAS 128"), effective December 31, 1997,  which
superseded Accounting Principles Board Opinion 15, "Earnings Per Share"
("APB  15").    SFAS  128  requires the Company to  report:  (i)  basic
earnings per common share, which is computed by dividing net income  by
weighted  average  number of shares of common stock outstanding  during
the  periods  presented, and (ii) diluted earnings  per  common  share,
which  is determined on the assumption that options issued to employees
are  exercised  and repurchased at the average price  for  the  periods
presented.    The  difference between the  number  of  shares  used  to
compute  basic  and diluted earnings per share relates  to  outstanding
stock  options  for all periods presented.   The Company  has  restated
prior period calculations in accordance with SFAS 128.   The impact  of
adopting  SFAS 128 did not result in material adjustments to previously
reported amounts.
<PAGE>
4.   Segment Reporting

In  September  1997,  the Financial Accounting Standards  Board  issued
Statement of Financial Accounting Standards No. 131, "Disclosures about
Segments of an Enterprise and Related Information" ("SFAS 131"),  which
is  effective for 1998.   The Company is required to report the segment
information required by SFAS 131 when it issues its 1998 annual report.
SFAS  131  establishes  new standards for reporting  information  about
operating segments using a "management approach".   The Company has not
completed its review of SFAS 131, and has not yet determined the impact
the new requirements will have on reportable segments.

5.   Comprehensive Income

In   1998,  the  Company  adopted  Statement  of  Financial  Accounting
Standards  No.  130  "Reporting  Comprehensive  Income"  ("SFAS  130").
Comprehensive   income  is  generally  defined  as   all   changes   in
shareholder's equity exclusive of transactions with owners.   SFAS  130
requires the disclosure of comprehensive income and its components.
<TABLE>
Comprehensive income is comprised of:
<CAPTION>
                              Three Months Ended           Nine Months Ended
                                 September 30                September 30
                              1998          1997          1998          1997
<S>                       <C>           <C>          <C>          <C>      
Net income                 $ 5,731,000   $ 4,871,000  $12,325,000  $ 8,917,000
Currency translation                                    
adjustment                      12,000       (12,000)     (14,000)      59,000
                           -----------   -----------  -----------  -----------
Comprehensive income       $ 5,743,000   $ 4,859,000  $12,311,000  $ 8,976,000
                           ===========   ===========  ===========  ===========
</TABLE>
6.   Derivative Instruments and Hedging Activities

     In  June  1998,  the Financial Accounting Standards  Board  issued
Statement  of  Financial Accounting Standards No. 133, "Accounting  for
Derivative  Instruments and for Hedging Activities" ("SFAS 133")  which
is required to be adopted in years beginning after June 15, 1999.   The
new  Statement requires all derivatives to be recorded on  the  balance
sheet  at  fair  value  and establishes special  accounting  for  three
different  types of hedges.  The Company, based on its current  hedging
activities, does not expect the adoption of SFAS 133 to have a material
effect on the earnings and financial position of the Company.

<PAGE>
Item 2.             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS



Results of Operations

The following table sets forth the Company's consolidated statements of
income  and  as a percentage of net sales for the three and nine  month
periods ended September  30, 1998 and September 30, 1997.
<TABLE>
<CAPTION>
                                            Three Months Ended

(in thousands)                 September 30, 1998          September 30, 1997
<S>                           <C>         <C>             <C>         <C>
Net Sales                      $ 62,010    100.0%          $ 50,287    100.0%
Gross Profit                     25,498     41.1             21,109     42.0
Licensing Income                  2,294      3.7              1,726      3.4
Selling, general and                 
 administrative expenses         18,415     29.7             14,677     29.2
Operating income                  9,377     15.1              8,158     16.2
Interest (income) expense, net      (96)     (.2)                39      0.0
Income before income taxes        9,473     15.3              8,119     16.2
Income tax expense                3,742      6.0              3,248      6.5
Net Income                        5,731      9.3              4,871      9.7



     
                                            Nine Months Ended

(in thousands)
                               September 30, 1998          September 30, 1997
     
Net Sales                      $162,370    100.0%          $135,549    100.0%
Gross Profit                     66,801     41.1             52,702     38.9
Licensing Income                  5,741      3.5              3,994      2.9
Selling, general and                              
 administrative expenses         52,498     32.3             41,596     30.7
Operating income                 20,044     12.3             15,100     11.1
Interest (income) expense, net     (328)     (.2)               238       .2
Income before income taxes       20,372     12.5             14,862     10.9
Income tax expense                8,047      5.0              5,945      4.4
Net Income                       12,325      7.5              8,917      6.5

</TABLE>

<PAGE>
Three  Months  Ended September 30, 1998 Compared to Three Months  Ended
September 30, 1997

Net  sales increased $11.7 million, or 23.3%, to $62.0 million for  the
three  months ended September 30, 1998 compared with net sales of $50.3
million  for  the three months ended September 30, 1997.  The  increase
was  primarily  attributable to increased net sales of handbags,  men's
footwear,  and  increased  sales by the  Company's  retail  and  outlet
stores,  partially offset by lower net sales of women's footwear.   Net
sales  of  the Company's wholesale operations, excluding sales  to  its
retail division, increased $8.3 million, or 20.9%, to $47.8 million for
the  three months ended September 30, 1998 from $39.6 million  for  the
three  months  ended September 30, 1997.   Net sales by  the  Company's
retail  and  outlet stores increased $3.5 million, or 32.2%,  to  $14.2
million for the three months ended September 30, 1998 compared  to  the
three  months ended September 30, 1997.  This increase reflects a 12.8%
or  $1.3 million comparable store sales increase generated from  forty-
two  stores  (  including one expanded store), sales  of  $1.5  million
generated  from five stores open for the entire third quarter  of  1998
which were not open in the third quarter of 1997, and the sales of  two
new stores opened during the third quarter.

Gross profit was $25.5 million for the three months ended September 30,
1998,  an increase of approximately $4.4 million, or 20.8%, from  $21.1
million  for the three months ended September 30, 1997. As a percentage
of  net  sales,  gross  profit was 41.1% for  the  three  months  ended
September 30, 1998 compared to 42% for the three months ended September
30,  1997.   The decrease in gross profit as a percentage of net  sales
was  due  to the weakness in the women's footwear market which resulted
in  increased  promotional pricing and markdowns, partially  offset  by
increased  sales  from  the Company's retail and  outlet  store,  which
produce  greater  gross  profit margins than  the  Company's  wholesale
operations.

Selling,  general and administrative expenses, including  shipping  and
warehousing  costs,  were $18.4 million (29.7% of net  sales)  for  the
three  months ended September 30, 1998 compared to $14.7 million (29.2%
of  net  sales)  for the three months ended September  30,  1997.   The
increase  in  selling,  general  and  administrative  expenses   as   a
percentage  of  net  sales is primarily due to  the  additional  retail
stores (which carry a higher expense level than the wholesale division)
partially  offset by a decrease in SG&A, as a percentage of net  sales,
in  the  wholesale  division  due to leverage  achieved  through  sales
growth.

Licensing  income increased 32.9% to $2.3 million for the three  months
ended  September 30, 1998 compared to $1.7 million for  the  comparable
period  in  1997.   This  increase reflects primarily  the  incremental
revenues from sales increases from the Company's existing licensees.

Interest  income was $96,000 for the three months ended  September  30,
1998,  compared  to interest expense of $39,000 for  the  three  months
ended September 30, 1997.

As  result of the foregoing, operating income increased 14.9%  to  $9.4
million (15.1% of net sales) from $8.2 million (16.2% of net sales) for
the three months ended September 30, 1998 and 1997, respectively.

<PAGE>

Nine  Months  Ended  September 30, 1998 Compared to Nine  Months  Ended
September 30, 1997

Net sales were $162.4 million in the first nine months of 1998 compared
to  $135.6  million  in the prior year's period, an increase  of  $26.8
million  or  19.8  %.    The  increase was  primarily  attributable  to
increased net sales of men's and children's footwear, handbags and  new
retail  and  outlet  stores, partially off-set by lower  net  sales  of
women's  footwear.   Net  sales of the Company's wholesale  operations,
excluding  sales  to its retail division, increased  $16.9  million  or
16.1%  to  $121.6 million in the nine months ended September  30,  1998
from $104.7 million in the comparable period last year.   This increase
was  primarily due to increased consumer awareness of the Kenneth  Cole
life  style  brand due to increased brand exposure generated  from  the
Company's growing consumer direct business and from licensing ventures,
such  as men's apparel.   Net sales by the Company's retail and  outlet
stores  increased $9.9 million or 32.2% to $40.8 million for  the  nine
months  ended September 30, 1998 as compared with the same period  last
year.   This increase reflects an 8.9% or $2.8 million comparable store
sales  increase,  sales of $4.0 million for four stores  open  for  the
entire nine months ended September 30, 1998, which were not open in the
same  period  of 1997 and the sales of three stores opened  during  the
first nine months of 1998.

Gross profit was $66.8 million in the nine month period ended September
30,  1998, an increase of  $14.1 million, or 26.8%, from $52.7  million
in  the  comparable period last year.   As a percentage of  net  sales,
gross  profit  was  41.1% compared to 38.9% for the nine  months  ended
September  30,  1997.  The  increase in  gross  profit  percentage  was
primarily  attributable to higher sell-throughs  generating  fewer  off
price  sales  as  compared to the prior period which experienced  lower
than  expected sell-throughs resulting in excess wholesale  inventories
disposed of at significant discounts.

Selling,  general and administrative expenses, including  shipping  and
warehousing costs, were $52.5 million (32.3% of net sales) for the nine
month  period ended September 30, 1998 and $41.6 million (30.7% of  net
sales)  for the comparable period last year.   The increase in selling,
general  and  administrative expenses as a percentage of net  sales  is
primarily due to additional retail stores (which carry a higher expense
level  than  the  wholesale division) and additional wholesale  payroll
costs to support certain of the Company's recent initiatives, including
launching children's footwear.

Licensing  income increased 43.7% to $5.7 million for the  nine  months
ended  September 30, 1998 compared to $4.0 million for  the  comparable
period  in 1997.  This increase in licensing income primarily  reflects
the  incremental  revenues from higher sales by the Company's  existing
licensees.

Interest  income  was $328,000 in the nine months ended  September  30,
1998,  compared  to interest expense of $238,000 for  the  nine  months
ended September 30, 1997.   The change to interest income from interest
expense  was  primarily due to higher average cash  balances  generated
from cash flows from operations.

As a result of the above, operating income increased 32.7% for the nine
month  period of 1998 to $20.0 million (12.3% of net sales) from  $15.1
million (11.1% of net sales) for the same period last year.

<PAGE>

Liquidity and Capital Resources

The   Company  relies  on  cash  flow  from  operating  activities  and
borrowings under its revolving credit agreement as the primary  sources
of  financing  for  its operations and expansion.   This  includes  the
purchase  of inventory in anticipation of increased sales  as  well  as
capital   expenditures  related  to  implementing  information  systems
technology  and additional retail and outlet stores.  Cash requirements
vary from time to time as a result of seasonal requirements, the timing
of  the  receipt of merchandise from suppliers and the Company's  "open
stock"  inventory  program  which requires an  increase  investment  in
inventories.   Cash used in operating activities was $0.8  million  for
the  nine  months  ended September 30, 1998, compared to  $2.5  million
provided  by operations for the nine months ended September  30,  1997.
The  decrease  in  cash provided by operating activities  is  primarily
attributable  to  the  increase in men's core product  to  support  the
Company's  open stock program as well as additional inventory  for  new
retail  stores.  At September 30, 1998 and December 31,  1997,  working
capital was $55.2 million and $46.9 million, respectively.

The   Company  currently  has  a  line  of  credit,  which  allows  for
borrowings, letters of credit and bankers acceptances up to  a  maximum
of  $25.0  million  to finance working capital requirements,  of  which
$23.9 million was available at September 30, 1998.

Capital  expenditures totaled $4.2 million and $2.8 in the nine  months
ended September 30, 1998 and 1997, respectively.  For 1998, the Company
expects   capital   expenditures  to  exceed  $6.0   million.   Capital
expenditures primarily relate to the Company's retail and outlet  store
expansion  and  to  the development and enhancement  of  the  Company's
management  information  systems.  The actual  amount  of  expenditures
depends, in part, on the number of new retail locations opened and  the
number of retail locations expanded or remodeled.

In  August  1998,  the management authorized the repurchase  of  up  to
500,000 shares of its Class A Common Stock.  As of September 30,  1998,
350,000  shares were repurchased for approximately $5.0  million.   The
Company  believes that it will repurchase the remaining 150,000  shares
of  its  Class  A Common Stock, depending on the market  value  of  the
Company's stock, from cash flows from operations.

The  Company  believes that cash flows from operations  and  borrowings
under  its  existing credit facility will be sufficient to satisfy  the
Company's working capital requirements and expansion plans for the next
twelve  months.   However, the Company continues to evaluate  potential
acquisitions  of  businesses that complement its  existing  operations.
Depending on various factors, including the cash consideration required
in  any potential acquisition, the Company may determine to utilize its
existing financing resources or pursue other financing alternatives.

<PAGE>

Year 2000

The  year  2000 issue is the result of computer programs being  written
using  two  digits  rather  than four to define  the  applicable  year.
Certain  information  technology systems and their associated  software
may  recognize  a date using "00" as a year other than the  year  2000,
which could cause a system failure or other computer errors, leading to
a  disruption  in the operation of such systems.  The  Company  has  in
place  a  project team to coordinate Year 2000 activities  and  address
remaining Year 2000 issues.

The  Company believes that by replacing, rather than reprogramming, its
wholesale distribution and financial systems with newer technologically
advanced   systems  that  offer  greater  functionality  and   enhanced
reporting,  the  Year 2000 Issue can be mitigated.   However,  if  such
replacements are not made, or are not completed timely, the  Year  2000
Issue could have a material impact on the operations of the Company

The  Company  has adopted a five-phase Year 2000 program consisting  of
the  following:  Phase  I - identification of  the  components  of  the
Company's  systems, equipment and suppliers that may be  vulnerable  to
Year  2000 problems; Phase II - assessment of items identified in Phase
I;  Phase  III - remediation or replacement of non-compliant suppliers;
Phase IV - testing of systems and components following replacement; and
Phase  V  - developing contingency plans to address the most reasonably
likely worst case Year 2000 scenarios.  The Company has completed Phase
I  and Phase II, and has made substantial progress on Phase III and  is
beginning Phase IV and V.

Information  systems Software and Hardware.  The Company has  completed
Phase  II  and is in process of implementing new wholesale distribution
and  financial systems. The Company currently expects to  complete  the
testing  and  implementation of its new information  systems  by  early
1999.   The Company will continue periodic testing during 1999 for  new
installations, versions or changes.

Third-Party  Relationships.  In addition to  addressing  the  Company's
internal  systems  and  equipment, the Company  is  communicating  with
significant  suppliers, vendors and other third parties with  whom  the
Company  has  a  significant business relationship with,  to  determine
their  state  of  readiness with respect to Year 2000.   Assessment  of
significant  third  party  Year  2000  readiness  is  expected  to   be
substantially  completed by early 1999. To date,  the  Company  is  not
aware  of  any third-party with a Year 2000 issue that would materially
impact  the  Company's  results  of  operations.  However,  failure  of
significant suppliers, vendors or other third parties to timely address
and  remedy  Year  2000 problems or to develop and  effect  appropriate
contingency plans could have a material adverse effect on the Company's
operations.   The  Company  believes that the geographically  disbursed
nature of its business and its large supplier and vendor base mitigates
such potential adverse effects.

Risks  and Contingency Plans.  Based on the assessment efforts to date,
the  Company  does  not believe that the Year 2000 issue  will  have  a
material  adverse  effect  on its financial  condition  or  results  of
operations.  However, the Year 2000 problem is unique and the Company's
Year  2000  compliance  program is based  on  various  assumptions  and
expectations that cannot be assured.  Potential risks include  loss  of
electric  power or certain communication links, disruptions to business
operations including delayed deliveries from suppliers, disruptions  to
the  channels  of distribution as well as disruptions to the  Company's
own distribution center.  The Company is in the process of developing a
contingency plan, which is expected to be completed by early  1999  and
will be based on its continuing assessment of potential risks.

The  Company  does not expect the costs associated with its  Year  2000
efforts  to be material to the Company's financial condition or results
of  operations.  The total cost of purchasing and implementing the  new
information  systems,  including addressing  the  Year  2000  Issue  is
estimated  at  $2.0 million, of which approximately $400,000  has  been
expensed  to  date.  The Company's cost estimates do not include  costs
associated  with  addressing and resolving issues as a  result  of  the
failure of third parties to become Year 2000 compliant.

Important Factors Relating to Forward Looking Statements

This  report  contains  certain forward-looking statements  within  the
meaning  of The Private Securities Litigation Reform Act of 1995.   The
forward-looking  statements are made a number of times  throughout  the
document and may be identified by forward-looking terminology, such  as
"expect,"  believe," "may," "will," "intend" or similar  statements  or
variations  of  such  terms.  Such forward-looking  statements  involve
certain material risks and uncertainties including, but not limited to,
economic, competitive, governmental and technological factors affecting
the Company's operations, markets and products.  Should one or more  of
these   risks  or  uncertainties  materialize,  or  should   underlying
assumptions  prove incorrect, actual results may vary  materially  from
those  anticipated, estimated or projected.  Accordingly, there can  be
no assurance that the forward-looking statements contained in this Form
10-Q  will be realized or that actual results will not be significantly
higher or lower.


Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Pursuant to the General Instructions to Rule 305 of Regulation S-K, the
quantitative  and  qualitative  disclosures  called  by  Rule  305   of
Regulation S-K is  not applicable to the Registrant at this time.

<PAGE>

                      Part II - OTHER INFORMATION
                                   
Item 1.   Legal Proceedings.   There have been no updates since the
          Company's report on Form 10-K for the year ended December 31, 1997.

Item 2.   Changes in Securities and Use of Proceeds. None

Item 3.   Defaults Upon Senior Securities. None

Item 4.   Submission of Matters to a Vote of Security Holders. None

Item 5.   Other Information. None

Item 6.   Exhibits and Reports on Form 8-K.

          (a) Exhibits:

          27        Financial Data Schedule.

          (b) Reports on Form 8-K:  The Company filed a report on Form 8-K
         dated August 18, 1998 reporting the issuance of a press release
         announcing that the Company's Board of Directors had authorized
         management to repurchase up to 500,000 shares of the Company's Class A
         Common Stock.
<PAGE>                                                                  
                                   
                                   
                                   
                                                   
                                   
                              SIGNATURES
                                   
                                   
                                   
                                   
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.


                                   Kenneth Cole Productions, Inc.
                                        Registrant





November 12, 1998                     /s/ STANLEY A. MAYER
                                      Executive Vice President and
                                      Chief Financial Officer

<PAGE>
                           INDEX OF EXHIBITS


                                                                Sequential
Exhibit Number:          Description                              Page No.

     
     27             Financial Data Schedule.                          19