UNITED STATES 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, 2008 or  (
 )  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
incorporation or organization)
(I.R.S. Employer
Identification No.)   603 West 50th Street, New York, NY
10019(Address of principal executive offices)
(Zip Code)  (212)
265-1500 (Registrants telephone number, including area code)  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 by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company.  See the definitions of large
accelerated filer, accelerated filer and smaller reporting company in Rule
12b-2 of the Exchange Act.  Large accelerated filer ( )
  Accelerated filer (X) Non-accelerated filer ( ) (Do not check if a
smaller reporting company) Smaller reporting company ( ).  Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 Yes ( ) No (X)  Indicate the number of shares outstanding
of each of the issuers classes of common stock, as of the latest practicable
date:  Class
November 4, 2008Class A Common Stock ($.01 par
value)
9,871,122Class B Common Stock ($.01 par
value)
8,010,497            Kenneth Cole Productions, Inc. Index
to Form 10-Q  Part
I.
FINANCIAL
INFORMATIONItem
1.
Financial
Statements (Unaudited)Condensed Consolidated Balance
Sheets as of September 30, 2008 and
December
31, 2007
3Condensed
Consolidated Statements of Operations for the three- and nine-month periods ended September 30, 2008 and 2007
5Condensed
Consolidated Statement
of Changes in Shareholders Equity
for
the nine-month period ended September 30,
2008
6Condensed
Consolidated
Statements of Cash Flows for the nine-month periods ended September 30,
2008 and 2007
7Notes
to Condensed Consolidated Financial Statements
8Item
2.
Managements
Discussion and Analysis of Financial Condition and
Results
of Operations
18Item
3.
Quantitative
and Qualitative Disclosures about Market Risk
25Item
4.
Controls
and Procedures
26Part
II.
OTHER
INFORMATIONItem
1.
Legal
Proceedings
26Item
1A.
Risk
Factors
26Item
2.
Unregistered
Sales of Equity Securities and Use of Proceeds
27Item
3.
Defaults
Upon Senior Securities
27Item
4.
Submission
of Matters to a Vote of Security Holders
27Item
5.
Other
Information
27Item
6.
Exhibits
27Signatures
28   2       Part I. FINANCIAL
INFORMATION  Item 1.
 Financial Statements     Kenneth
Cole Productions, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited)   September 30,
2008
December 31,
2007AssetsCurrent
assets:Cash
and cash equivalents
$
50,992,000
$
90,653,000Due
from factors
34,542,000
28,132,000Accounts
receivable, net
21,406,000
19,805,000Inventories,
net
56,462,000
48,033,000Prepaid
expenses and other current assets
5,899,000
4,353,000Deferred
taxes, net
4,980,000
5,173,000Total
current assets
174,281,000
196,149,000Property
and equipment, at cost, less accumulateddepreciation
and amortization
58,917,000
60,357,000  Other
assets:Intangible
assets, net
16,763,000
14,083,000Deferred
taxes, net
25,824,000
24,660,000Investments
and other
12,307,000
14,914,000Deferred
compensation plans assets
43,047,000
45,729,000Total
other assets
97,941,000
99,386,000Total
Assets
$331,139,000
$355,892,000    See
accompanying notes to condensed consolidated financial statements.   3     Kenneth
Cole Productions, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (continued) (Unaudited)  September 30,
2008
December 31,
2007Liabilities
and Shareholders EquityCurrent
liabilities:Accounts
payable and accrued expenses
$
44,338,000
$
39,470,000Other
current liabilities
9,395,000
10,852,000Deferred
income
6,374,000
5,071,000Income
taxes payable
1,394,000
1,355,000Total
current liabilities
61,501,000
56,748,000Accrued
rent and other long-term liabilities
16,354,000
14,762,000Deferred
compensation plans liabilities
40,244,000
42,392,000Commitments
and contingenciesShareholders
Equity:Series
A Convertible Preferred Stock, par value
$1.00,
1,000,000 shares authorized,
none
outstanding
-
-Class
A Common Stock, par value $.01,
40,000,000
shares authorized; 15,720,768
and
15,604,673 issued as of September 30, 2008 and December 31, 2007,
respectively
157,000
156,000Class
B Common Stock, par value $.01,
9,000,000
shares authorized; 8,010,497 issued
and
outstanding as of September 30, 2008
and
December 31, 2007, respectively
80,000
80,000Additional
paid-in capital
101,914,000
99,277,000Accumulated
other comprehensive income
1,717,000
914,000Retained
earnings
234,093,000
242,108,000337,961,000
342,535,000Class
A Common Stock in treasury, at cost, 5,855,550 and 4,236,350 shares as of
September 30, 2008 and December 31, 2007, respectively
(124,921,000)
(100,545,000)Total
Shareholders Equity
213,040,000
241,990,000Total
Liabilities and Shareholders Equity
$331,139,000
$355,892,000   See
accompanying notes to condensed consolidated financial statements.  4      Kenneth
Cole Productions, Inc. and Subsidiaries  Condensed Consolidated Statements of Operations (Unaudited)   Three Months Ended
September 30,
Nine Months Ended
September
30,2008
2007

2008
2007Net
sales
$120,161,000
$118,644,000

$333,669,000
$346,849,000Royalty
revenue
11,947,000
11,669,000

32,087,000
31,751,000Net
revenues
132,108,000
130,313,000

365,756,000
378,600,000Cost
of goods sold
77,757,000
72,462,000

215,134,000
215,470,000Gross
profit
54,351,000
57,851,000

150,622,000
163,130,000Selling,
general and administrative expenses
51,896,000
53,794,000

150,113,000
150,921,000Operating
income
2,455,000
4,057,000

509,000
12,209,000Interest
and other
(expense)/income,
net
(2,887,000)
1,525,000

(2,477,000)
4,340,000(Loss)/income
before provision for income taxes
(432,000)
5,582,000

(1,968,000)
16,549,000Provision
for income taxes
1,122,000
2,149,000

831,000
6,372,000Net
(loss)/income
$  (1,554,000)
$
  3,433,000

$  (2,799,000)
$
 10,177,000(Loss)/earnings
per share:Basic
$(0.09)
$0.17

$(0.15)
$0.50Diluted
$(0.09)
$0.17

$(0.15)
$0.50Dividends
declared per
share
$0.09
$0.18

$0.27
$0.54Shares
used to compute (loss)/earnings per share:Basic
17,903,000
20,213,000

18,604,000
20,172,000Diluted
17,903,000
20,431,000

18,604,000
20,464,000     See
accompanying notes to condensed consolidated financial statements.  5


Kenneth Cole Productions, Inc. and Subsidiaries  Condensed Consolidated Statement of Changes in Shareholders
Equity (Unaudited) Class A
Common Stock
Class B
Common Stock
Additional
Accumulated
Other

Treasury StockNumber
of
shares
Amount
Number
of
shares
Amount
Paid-in
Capital
Comprehensive
Income
Retained
Earnings
Number of
Shares
Amount
TotalShareholders
equity
January
1, 2008
15,604,673
$156,000
8,010,497
$80,000
$99,277,000
$914,000
$242,108,000
(4,236,350)
$(100,545,000)
$241,990,000Net loss






(2,799,000)


(2,799,000)Translation
adjustment for foreign currency, net of taxes of $(183,000)





(249,000)



(249,000)Forward
contracts, net of taxes of $(16,000)





(25,000)



(25,000)Unrealized
gain on available-for-sale securities, net of reclassification adjustment,
net of taxes of $114,000





1,077,000



1,077,000Comprehensive
loss









(1,996,000)Stock-based
compensation expense




3,824,000




3,824,000Exercise
of stock options and related tax benefits
5,400
-


71,000




71,000Issuance
of restricted stock and related tax benefits
144,650
1,000


(653,000)




(652,000)Shares
surrendered by employees to pay taxes on restricted stock
(46,912)
-


(774,000)




(774,000)Issuance
of Class A Common Stock from ESPP
12,957
-


169,000




169,000Purchase
of Class A Stock







(1,619,200)
(24,376,000)
(24,376,000)Dividends
paid on common stock






(5,216,000)


(5,216,000)Shareholders
equity
September
30, 2008
15,720,768
$157,000
8,010,497
$80,000
$101,914,000
$1,717,000
$234,093,000
(5,855,550)
$(124,921,000)
$213,040,000 See
accompanying notes to condensed consolidated financial statements.   6  Kenneth Cole
Productions, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Nine
Months Ended
September 30,2008
2007Cash
flows (used in)/provided by operating activitiesNet
(loss)/income
$
 (2,799,000)
$
10,177,000Adjustments
to reconcile net (loss)/income to net cash
(used
in)/provided by operating activities:Depreciation
and amortization
6,892,000
8,853,000Provision
for doubtful accounts
250,000
183,000Benefit
from deferred taxes
(971,000)
(3,550,000)Unrealized
(gain)/loss from available-for-sale securities
(296,000)
1,252,000Loss
on investments
4,114,000
--Stock-based
compensation expense
3,745,000
5,446,000Tax
benefit from stock option exercises and restricted stock vestings
(917,000)
(2,101,000)Changes
in operating assets and liabilities:Increase
in due from factors
(6,410,000)
(6,656,000)(Increase)/decrease
in accounts receivable
(1,851,000)
8,015,000Increase
in inventories
(8,454,000)
(9,931,000)Increase
in prepaid expenses and other current assets
(1,281,000)
(474,000)Decrease/(increase)
in other assets
2,549,000
(7,486,000)Increase
in accounts payable and accrued expenses
5,368,000
102,000(Decrease)/increase
in deferred income and other current liabilities
(278,000)
2,691,000Increase/(decrease)
in income taxes payable
39,000
(1,260,000)(Decrease)/increase
in other long-term liabilities
(556,000)
8,323,000Net
cash (used in)/provided by operating activities
(856,000)
13,584,000Cash
flows used in investing activitiesAcquisition
of property and equipment
(5,246,000)
(8,440,000)Purchase
of intangible assets
(3,387,000)
(13,610,000)Proceeds
from sale of marketable securities
--
8,350,000Purchases
of marketable securities and other investments
--
(4,700,000)Net
cash used in investing activities
(8,633,000)
(18,400,000)Cash
flows used in financing activitiesShares
surrendered by employees to pay taxes on restricted stock
(774,000)
(836,000)Excess tax
benefit from stock options
8,000
1,061,000Proceeds
from exercise of stock options
63,000
3,567,000Proceeds
from employee stock purchase plan
169,000
277,000Acquisition
of treasury shares
(24,376,000)
(5,577,000)Dividends
paid to shareholders
(5,216,000)
(11,002,000)Net
cash used in financing activities
(30,126,000)
(12,510,000)Effect
of exchange rate changes on cash
(46,000)
(41,000)Net
decrease in cash
(39,661,000)
(17,367,000)Cash
and cash equivalents, beginning of period
90,653,000
105,441,000Cash
and cash equivalents, end of period
$50,992,000
$88,074,000Supplemental
disclosures of cash flow informationCash
paid during the period for:Interest
$
      30,000
$
        2,000Income
taxes, net
$
 3,628,000
$11,837,000 See
accompanying notes to condensed consolidated financial statements.  7


Kenneth Cole Productions, Inc. and Subsidiaries Notes to
Condensed Consolidated Financial Statements (Unaudited)    1.  Basis of Presentation  The accompanying unaudited condensed consolidated financial
statements have been prepared by Kenneth Cole Productions, Inc. (the Company)
in accordance with accounting principles generally accepted in the United States
for interim financial information.  Accordingly, they do not include all of
the information and footnotes required by accounting principles generally
accepted in the United States for complete financial statements.  Certain
items contained in these financial statements are based on estimates.  In
the opinion of the Companys management, the accompanying unaudited condensed
consolidated financial statements reflect all significant adjustments,
consisting of only normal and recurring adjustments, necessary for a fair
presentation of the financial position and results of operations and cash flows
for the periods presented.  All significant intercompany transactions have
been eliminated.  Operating results for the nine months ended September 30, 2008 are
not necessarily indicative of the results that may be expected for the year
ended December 31, 2008.  These unaudited condensed consolidated financial
statements should be read in conjunction with the financial statements and
footnotes included in the Companys Annual Report on Form 10-K for the year
ended December 31, 2007.  The Companys consolidated Balance Sheet at December 31, 2007, as
presented, was derived from the audited financial statements included in the
Companys Annual Report on Form 10-K for the period ended December 31, 2007.
 Certain amounts in the Companys previous financial statements have been
reclassified to conform to the 2008 presentation.  2.  Stock-Based Compensation  The Company has stock-based compensation plans under which
directors, officers and other eligible employees receive stock options,
restricted stock, and other equity-based awards, and accounts for the related
stock-based compensation under Statement of Financial Accounting Standards No.
123R, Share-Based Payment (SFAS 123R), as described in Note 13 to the
Companys Consolidated Financial Statements for the year ended December 31,
2007.  Stock options are granted with an exercise price equal to the
market value of a share of common stock on the date of grant.  Stock option
grants expire within 10 years and vest on a graded basis within two to five
years from the date of grant.  Restricted stock unit awards generally vest
on a graded basis over a three to four year period or cliff vest after three
years.  During the nine-month periods ended September 30, 2008 and 2007,
the Company granted 841,500 and 20,000 stock options, respectively.  Also,
during the nine-month periods ended September 30, 2008 and 2007, the Company
granted 127,462 and 305,044 shares of restricted stock, respectively.
 Stock options outstanding and unvested restricted stock amounted to
2,460,546 and 534,335 shares, respectively, as of September 30, 2008.           8   Kenneth Cole Productions, Inc. and Subsidiaries Notes to
Condensed Consolidated Financial Statements (Unaudited)  2.  Stock-Based Compensation (continued)  The following table summarizes the components of stock-based
compensation expense for the three and nine months ended September 30, 2008 and
2007, all of which is included in Selling, general, and administrative expenses
in the Condensed Consolidated Statements of Operations:   Three months ended
September 30,
Nine months ended
September 30,2008
2007
2008
2007Stock
options
$  277,000
$   442,000
$  637,000
$1,365,000Restricted
stock units and employee stock purchase plan
900,000
1,410,000
3,108,000
4,081,000Total
stock-based compensation expense
$1,177,000
$1,852,000
$3,745,000
$5,446,000  The fair value of stock options was estimated using the
Black-Scholes option-pricing model.  The following table summarizes the
assumptions used to compute the weighted-average fair value of stock option
grants for the nine months ended September 30, 2008 and 2007:  2008 (1)
2007 (1)Weighted-average
volatility
38.4%
47.9%Risk-free
interest rate
4.0% to 4.1%
4.8%Weighted-average
dividend yield
2.4%
3.0%Expected
term
4-9 years
3-9 years____________ (1)  No stock options were granted in the first and third
quarters.  The weighted-average volatility for the current period was
developed using historical volatility for periods equal to the expected term of
the options.  The risk-free interest rate was developed using the U.S.
Treasury yield curve for periods equal to the expected term of the options on
the grant date.  The dividend yield is calculated by using the dividends
declared per share and the Companys stock price on the date of grant.  The
expected term of stock option grants was developed after considering vesting
schedules, life of the option, historical experience and estimates of future
exercise behavior patterns.  The fair value of restricted stock was calculated by multiplying
the Companys stock price on the date of grant by the number of shares granted
and is currently being amortized over the vesting periods of the individual
grants.  SFAS 123R requires the recognition of stock-based compensation for
the number of awards that are ultimately expected to vest.  As a result,
for most awards, recognized stock compensation expense was reduced for estimated
forfeitures prior to vesting primarily based on historical annual forfeiture
rates by employee classification.  Estimated forfeitures will be reassessed
in subsequent periods and may change based on new facts and circumstances.  As of September 30, 2008, approximately $10.1 million of
unrecognized stock compensation expense related to unvested awards, net of
estimated forfeitures, is expected to be recognized over a weighted-average
period of 2.2 years.    9  Kenneth Cole Productions, Inc. and Subsidiaries Notes to
Condensed Consolidated Financial Statements (Unaudited)  3. (Loss)/Earnings Per Share  The Company calculates (loss)/earnings per share in accordance
with SFAS No. 128, Earnings Per Share.  Basic (loss)/earnings per
share are calculated by dividing net (loss)/income by weighted-average common
shares outstanding.  Diluted (loss)/earnings per share are calculated
similarly, except that it includes the dilutive effect of the assumed exercise
of securities under the Companys stock incentive plans.  Dilutive
securities, which include stock options and restricted stock, are determined
under the treasury stock method by calculating the assumed proceeds available to
repurchase stock using the weighted-average shares outstanding for the period.
 Basic and diluted (loss)/earnings per common share consist of the
following:  Three Months Ended
Nine Months EndedSeptember  30, 2008
September 30, 2007
September  30, 2008
September   30, 2007Weighted-average commonshares outstanding
17,903,000
20,213,000
18,604,000
20,172,000Effect of dilutive securities:Restricted stock & employee
    stock purchase plan
--
129,000
--
128,000Stock options
--
89,000
--
164,000Weighted-average commonshares outstanding and commonshare equivalents
17,903,000
20,431,000
18,604,000
20,464,000  All stock options and restricted stock outstanding as of September
30, 2008 have not been included in the diluted per share calculation as the
Company has recorded a net loss for the three and nine months ended September
30, 2008 and the impact would be antidilutive.  Stock options outstanding
as of September 30, 2007, in an aggregate amount of 1,396,000, have not been
included in the diluted per share calculations since their effect would be
antidilutive.  10  Kenneth Cole Productions, Inc. and Subsidiaries Notes to
Condensed Consolidated Financial Statements (Unaudited)  4. Investments  The Company reviews its investments for other-than-temporary
impairment whenever the fair value of an investment is less than amortized cost
and evidence indicates that an investments carrying value may not be
recoverable within a reasonable period of time.  The fair value of the
Companys auction rate securities is determined from third-party investment
statements.  The primary variables used in determining fair value include
risk premium, estimated redemption date and investment coupon rate.  In the
Companys evaluation of its investments in 2008, it considered its ability and
intent to hold the investment until the market price recovers, the reasons for
the decline in fair value, the duration of the decline in fair value and
expected future performance.  Based on this evaluation, the Company
recorded a $0.1 million and $0.9 million writedown in its marketable securities,
specifically auction rate securities, within Interest and other
(expense)/income, net in the Condensed Consolidated Statements of Operations
during the three- and nine-month periods ended September 30, 2008, respectively.
 The Company also recorded a $3.2 million loss on an investment in common
stock of one of its licensees after determining that an other-than-temporary
impairment existed.  This charge is included within Interest and other
(expense)/income, net in the Condensed Consolidated Statements of Operations
during the three- and nine-month periods ended September 30, 2008.  The following table presents gross unrealized gains/(losses) on,
and estimated fair value of, the Companys long-term investments as of September
30, 2008 and December 31, 2007:  September 30, 2008
December 31, 2007Estimated Fair Value
Unrealized Gains/(Losses)
Estimated Fair Value
Unrealized
Gains/(Losses)Marketable
securities
$  7,431,000
--
$
 8,305,000
--Investments
$  3,203,000
$1,106,000
$  4,648,000
$(690,000)Total
$10,634,000
$1,106,000
$12,953,000
$(690,000)  5. Fair Value Measurement  The Company adopted FASB Statement No. 157, Fair Value
Measurements (SFAS 157) provisions on January 1, 2008.  In February
2008, the FASB deferred the effective date of SFAS 157 for one year for
nonfinancial assets and nonfinancial liabilities that are recognized or
disclosed at fair value in the financial statements on a nonrecurring basis.
 The Companys financial assets, measured at fair value on a recurring
basis, were as follows:   Fair Value at
September 30, 2008
HierarchyMarketable
securities
$7,431,000
Level 3Investments
$3,203,000
Level 1Deferred
compensation plans assets
$37,424,000
Level 2  A Level 1 hierarchy represents a fair value that is derived from
unadjusted quoted prices in active markets for identical assets or liabilities
that the Company has the ability to access at the measurement date.  A
Level 2 hierarchy represents a fair value that is derived from inputs other than
quoted prices included within Level 1 that are observable for the asset or
liability, either directly or   11  Kenneth Cole Productions, Inc. and Subsidiaries Notes to
Condensed Consolidated Financial Statements (Unaudited)  5. Fair Value Measurement (continued)  indirectly.  A Level 3 hierarchy represents a fair value that
is derived from inputs that are unobservable or from observable inputs based on
unobservable data in an inactive market.  The following table presents the reconciliation of the beginning
and ending fair value measurements of the Companys Level 3 inputs, marketable
securities, measured at fair value using observable inputs based on unobservable
data in an inactive market for the nine months ended September 30, 2008:  Beginning balance at January 1, 2008
$
    -Transfer in
from Level 2 inputs
8,305,000Total realized
losses included within Interest and other (expense)/income, net
(874,000)Ending balance
at September 30, 2008
$7,431,000  The Company recorded a $0.1 million and $0.9 million writedown in
its marketable securities, specifically auction rate securities, within Interest
and other (expense)/income, net in the Condensed Consolidated Statements of
Operations during the three- and nine-month periods ended September 30, 2008,
respectively.  The Company also recorded a $3.2 million loss on an
investment in common stock of one of its licensees after determining that an
other-than-temporary impairment existed.  This charge is included within
Interest and other (expense)/income, net in the Condensed Consolidated
Statements of Operations during the three- and nine-month periods ended
September 30, 2008.  6. Comprehensive (Loss)/Income  Comprehensive (loss)/income is comprised of net (loss)/income, the
effect of foreign currency translation and changes in unrealized gains and
losses on available-for-sale securities.  Comprehensive income for the
three-month period ended September 30, 2008 amounted to $369,000.
 Comprehensive loss for the nine-month period ended September 30, 2008
amounted to $1,996,000.  Comprehensive income for the three- and nine-month
periods ended September 30, 2007 amounted to $3,168,000 and $9,510,000,
respectively.  7. Derivative Instruments and Hedging Activities  In the normal course of business, the Company may enter into
forward contracts in anticipation of future purchases of inventory denominated
in foreign currencies.  These forward contracts are used to hedge against
the Companys exposure to changes in Euro exchange rates to protect the purchase
price of merchandise under such commitments. The Company classifies these
contracts as cash flow hedges under SFAS No. 133 Accounting for Derivative
Instruments and Hedge Activities.  The Company had an outstanding
forward contract of approximately $745,000 at September 30, 2008.  The
contract settled and closed on October 1, 2008.  All terms and conditions of the Companys forward contracts are
included in the measurement of the related hedge effectiveness.  The
critical terms of the forward contracts are the same as the underlying
forecasted transactions.  As a result, changes in the fair value of the
contracts should be highly effective in offsetting changes in the expected cash
flows from the forecasted transactions.  No gains or losses related to
ineffectiveness of cash flow hedges were recognized in earnings during the
three- and nine-month periods ended September 30, 2008.  At September 30,
2008, the notional amount of the Companys forward contracts was approximately
$745,000, and resulted in an unrealized loss of  12 Kenneth Cole Productions, Inc. and Subsidiaries Notes to
Condensed Consolidated Financial Statements (Unaudited)   7. Derivative Instruments and Hedging Activities
(continued)  approximately $25,000, net of taxes, for the nine months ended
September 30, 2008 which was included in Accumulated Other Comprehensive Income
in the Companys Condensed Consolidated Statement ofChanges in
Shareholders Equity and as a decrease to inventory, the underlying exposure on
the Companys Balance Sheet.  The Company expects to reclassify all of the
unrealized loss fromAccumulated Other Comprehensive Income into earnings
within the next month due to the actual executions of foreign exchange contracts
to purchase merchandise and the ultimate sale of that merchandise.  8. Segment Information  The Company has three reportable segments:  Wholesale,
Consumer Direct and Licensing.  The Wholesale segment designs and sources a
broad range of fashion footwear, handbags, accessories, and apparel and markets
its products for sale to approximately 6,000 department and specialty store
locations and to the Companys Consumer Direct segment.  The Consumer
Direct segment markets a broad selection of the Companys branded products,
including licensee products, for sale directly to the consumer through its own
channels of distribution, which include full-priced retail stores, Company
Stores (outlets) and e-commerce (at website addresses
www.kennethcole.com and
www.kennethcolereaction.com).  The Licensing segment, through
third-party licensee agreements, has evolved the Company from a footwear
resource to a diverse lifestyle brand competing effectively in approximately 30
apparel and accessories categories for both men and women.  The Company
maintains control over quality, image and distribution of the licensees.
 This segment primarily consists of royalties earned on licensee sales to
third parties of the Companys branded products and royalties earned on the
purchase and sale to foreign retailers, distributors, or to consumers in foreign
countries.  The Companys reportable segments are business units that offer
products to overlapping consumers through different channels of distribution.
 Each segment is managedseparately, althoughplanning,
implementation and results across segments are reviewed internally by the
executive management committee.  The Company evaluates performance of each
of its segments and allocates resources based on profit or loss before
unallocated corporate overhead, stock-based compensation expense, writedown of
marketable securities, non-operating impairment charges and income taxes for
each segment.  Intersegment sales between the Wholesale and Consumer Direct
segments are eliminated in consolidation.   13  Kenneth Cole Productions, Inc. and Subsidiaries Notes to
Condensed Consolidated Financial Statements (Unaudited)  8. Segment
Information (continued) Financial information of the Companys reportable segments is as
follows (in thousands):  Three Months Ended

Nine Months EndedSeptember 30,
2008

September 30,
2008Consumer




ConsumerWholesale
Direct
Licensing
Totals

Wholesale
Direct
Licensing
TotalsRevenue from external customers
$77,533
$42,628
$11,947
$132,108

$209,564
$124,105
$32,087
$365,756Intersegment revenues
10,240
--
--
10,240

30,742
--
--
30,742Segment income/(loss) (1)
924
(4,672)
9,904
6,156

433
(13,303)
24,937
12,067Segment assets (2)





210,687
56,921
63,531
331,139  Three Months Ended

Nine Months EndedSeptember 30, 2007

September 30, 2007Consumer




ConsumerWholesale
Direct
Licensing
Totals

Wholesale
Direct
Licensing
TotalsRevenue from external customers
$78,765
$39,879
$11,669
$130,313

$228,826
$118,023
$31,751
$378,600Intersegment revenues
8,189
--
--
8,189

21,358
--
--
21,358Segment income/(loss)(1)
5,337
(5,752)
9,849
9,434

18,174
(16,127)
25,837
27,884Segment assets (2)





261,606
65,262
43,820
370,688 _________________  (1) Before unallocated corporate overhead, stock-based compensation
expense, writedown of marketable securities, non-operating impairment charges
and income taxes. (2) The Wholesale segment includes corporate assets.  The
reconciliation of the Companys reportable segment revenues and (loss)/income
are as follows (in thousands):  Three Months Ended
Nine Months
EndedSeptember 30,
2008
September 30,
2007
September 30,
2008
September 30,
2007RevenuesRevenues for external
customers
$132,108
$130,313
$365,756
$378,600Intersegment revenues (1)
10,240
8,189
30,742
21,358Elimination of intersegment
revenues
(10,240)
(8,189)
(30,742)
(21,358)Total consolidated
revenues
$132,108
$130,313
$365,756
$378,600(Loss)/IncomeTotal income for reportable segments
(1)
$    6,156
$
   9,434
$   12,067
$
 27,884Elimination of stock-based compensation expense,
unallocated overhead, writedown of marketable securities and non-operating
impairment charges
(6,588)
(3,852)
(14,035)
(11,335)Total (loss)/income before income
taxes
$
    (432)
$
   5,582
$  (1,968)
$
 16,549_____________________  (1) Before unallocated corporate overhead, stock-based compensation
expense, writedown of marketable securities, non-operating impairment charges
and income taxes.  14  Kenneth Cole Productions, Inc. and Subsidiaries Notes to
Condensed Consolidated Financial Statements (Unaudited)  8. Segment Information (continued)  Revenues from international customers were approximately 4.3% and
3.9% of the Companys consolidated revenues for the three months ended September
30, 2008 and 2007, respectively, and approximately ­­­­3.9% and
3.0% of the Company's consolidated revenues for the nine months ended September
30, 2008 and 2007, respectively.  9. Income Taxes  Income taxes are accounted for in accordance with SFAS No. 109
Accounting for Income Taxes.Deferred income taxes reflect the
net tax effects of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for income
tax purposes.  The measurement of deferred income taxes is reduced by a
valuation allowance if, based upon available evidence, it is more likely than
not that some or all of the deferred income taxes will not be realized.  The Companys tax rate for the three and nine months ended
September 30, 2008 has been increased due to the recording of a valuation
allowance of $1.2 million for a reserve against tax assets for certain
other-than-temporary investment impairments.  During the three months ended
September 30, 2008, the Company closed a state audit for the fiscal periods 2003
through 2004, which resulted in a payment accrued for in prior periods.  10. Related Party Transactions  The Company has an exclusive license agreement with Iconix Brand
Group, Inc. and its trademark holding company, IP Holdings, LLC (Iconix), to
use the Bongo trademark in connection with the manufacture, sale and
distribution of womens, mens and childrens footwear in certain territories.
 The Chief Executive Officer and Chairman of Iconix is the brother of the
Companys Chairman and Chief Creative Officer.  The term of the agreement
is through December 31, 2010.  Management believes that the license
agreement with Iconix was entered into at arms-length.  During these
periods, the Company is obligated to pay Iconix a percentage of net sales based
upon the terms of the agreement.  The Company recorded approximately
$284,000 and $857,000 in aggregate royalty and advertising expense under the
agreement for the three- and nine-month periods ended September 30, 2008,
respectively.  The Company recorded approximately $330,000 and $841,000 in
aggregate royalty and advertising expense under the agreement for the three- and
nine-month periods ended September 30, 2007, respectively.  The Company recorded expenses of approximately $161,000 and
$427,000 for the three and nine months ended September 30, 2008, respectively,
to a third-party aviation company which hires and uses an aircraft partially
owned by Emack LLC, a company which is wholly owned by the Companys Chairman
and Chief Creative Officer.  During the three and nine months ended
September 30, 2007, the Company recorded expenses of approximately $111,000 and
$340,000, respectively, for hire and use of aircraft partially owned by Emack
LLC.  Management believes that all transactions were made on terms and
conditions similar to or more favorable than those available in the marketplace
from unrelated parties.  11. Common Stock Repurchase  During the three months ended September 30, 2008, the Company
repurchased 337,200 of its shares at an aggregate price of $4,409,000.
 During the nine months ended September 30, 2008, the Company repurchased
1,619,200 of its shares at an aggregate price of $24,376,000.  15  Kenneth Cole Productions, Inc. and Subsidiaries Notes to
Condensed Consolidated Financial Statements (Unaudited)   12. Intangible Asset Purchase  In September 2007, the Company acquired the Le Tigre
trademark and other intellectual property associated with the Le Tigre
brand from Le Tigre, LLC (the Seller).  In October 2008, the Company
amended the First Amended Asset Purchase Agreement (the Second Amendment) it
had previously entered into with Le Tigre, LLC.  Upon the mutual execution
of the Second Amendment, the Company paid the Seller $3.0 million for achieving
one of the performance targets in the Second Amendment.  The Second
Amendment also provides that the Company has no future payment obligations to Le
Tigre, LLC for the acquisition of the Le Tigre trademark and other
intellectual property associated with the Le Tigre brand.  The final
purchase price for *Le Tigre*was $18.5 million.  13. New Accounting Pronouncements  In March 2008, the FASB issued SFAS No. 161,
Disclosures about Derivative Instruments and Hedging Activities, an
amendment of FASB Statement No. 133 (SFAS 161).  SFAS 161
amends and expands the disclosure requirements of SFAS No. 133,
Accounting for Derivative Instruments and Hedging Activities.SFAS 161 is effective for financial statements issued for fiscal years
and interim periods beginning after November 15, 2008.  The Company
expects that SFAS 161 will not have a material impact on the Companys
consolidated financial statements.  In April 2008, the FASB issued Staff Position FAS 142-3,
Determination of the Useful Life of Intangible Assets (FSP 142-3).
 FSP 142-3 amends the factors that should be considered in developing
renewal or extension assumptions used to determine the useful life of a
recognized intangible asset under SFAS No. 142, Goodwill and Other
Intangible Assets (SFAS 142).  The intent of FSP 142-3 is to improve
the consistency between the useful life of a recognized intangible asset under
SFAS 142 and the period of expected cash flows used to measure the fair value of
the asset under SFAS No. 141R Business Combinationsand other
applicable accounting literature.  FSP 142-3 is effective for financial
statements issued for fiscal years beginning after December 15, 2008 and must be
applied prospectively to intangible assets acquired after the effective date.
 The Company expects that FSP 142-3 will not have a material impact on the
Companys consolidated financial statements.  In May 2008, the FASB issued SFAS No. 162, Hierarchy of
Generally Accepted Accounting Principles(SFAS 162).  This statement
is intended to improve financial reporting by identifying a consistent
framework, or hierarchy, for selecting accounting principles to be used in
preparing financial statements of nongovernmental entities that are presented in
conformity with GAAP.  This statement will be effective sixty days
following the U.S. Securities and Exchange Commissions approval of the Public
Company Accounting Oversight Board amendment to AU Section 411, The Meaning
of Present Fairly in Conformity with Generally Accepted Accounting
Principles.  The Company is currently evaluating the impact of SFAS
162 on the Companys consolidated financial statements.  In October 2008, the FASB issued Staff Position No. FAS
157-3, Determining the Fair Value of a Financial Asset When the Market for
That Asset Is Not Active (FSP 157-3) which clarifies the application of
SFAS No. 157 Fair Value Measurements in an inactive market and
illustrates how an entity would determine fair value when the market for a
financial asset is not active.  The Staff Position is effective immediately
and applies to prior periods for which financial statements have not been
issued, including interim or annual periods ending on or before
September 30, 2008.  The implementation of FSP 157-3 did not have a
material impact on the Companys consolidated financial statements.     16  Kenneth Cole Productions, Inc. and Subsidiaries Notes to
Condensed Consolidated Financial Statements (Unaudited)  14.  Subsequent Events  On October 24, 2008, the Company amended the First Amended Asset
Purchase Agreement (the Second Amendment) it had previously entered into with
Le Tigre, LLC.  Upon the mutual execution of the Second Amendment, the
Company paid the Seller $3.0 million for achieving one of the performance
targets in the Second Amendment.  The Second Amendment also provides that
the Company has no future payment obligations to Le Tigre, LLC for the
acquisition of the Le Tigre trademark and other intellectual property
associated with the Le Tigre brand.  The final purchase price for
Le Tigrewas $18.5 million.  On October 30, 2008, the Companys Board of Directors declared a
quarterly cash dividend of $0.09 per share payable on December 11, 2008, which
will be paid to shareholders of record at the close of business on November 20,
2008.   17    Item 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS  Forward-Looking Statements Disclosure  The statements contained in this report which are not historical
facts, including, without limitation, statements that relate to future
performance and/or statements regarding the Companys anticipated results or
level of business for 2008 or any other future period, may be deemed to
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995.  Such statements are based on
current expectations only, and actual future results might differ materially
from those projected in such statements due to a number of risks and
uncertainties, including, but not limited to, demand and competition for the
Companys products, the ability to enter into new licensee agreements, to
maintain and renew existing licensing agreements, and to open new stores,
changes in consumer preferences or fashion trends, events causing disruption in
product shipment, change in import regulations, dependence on certain large
customers, changes in the Companys relationships with vendors and other
resources, the launching or prospective development of new business initiatives,
future licensee sales growth, gross margins, store expansion, renovation and
openings, changes in distribution centers, and the implementation of management
information systems.  The forward-looking statements contained herein are
also subject to other risks and uncertainties that are described in the
Companys reports and registration statements filed with the Securities and
Exchange Commission.  The Company undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result of new
information, future results or otherwise.  Update on Critical Accounting Policies and Estimates  The Companys consolidated financial statements are prepared in
accordance with accounting principles generally accepted in the United States,
which require the Company to make estimates in the application of its accounting
policies based on the best assumptions, judgments and opinions of management.
 For a summary of the Companys significant accounting policies, see the
Companys Consolidated Financial Statements included in the Companys Annual
Report on Form 10-K for the year ended December 31, 2007.  Overview  Kenneth Cole Productions, Inc., incorporated in September 1982,
designs, sources and markets a broad range of fashion footwear, handbags and
apparel and, through license agreements, designs and markets apparel and
accessories under its Kenneth Cole New York, Kenneth Cole Reaction,
Unlisted, Tribeca and Gentle Souls brand names, as well as
having the rights to use the Bongo trademark for footwear through a
license agreement.  The Company also designs, develops and sources private
label footwear and handbags for selected retailers.  In addition, the
Company acquired the Le Tigre trademark and other intellectual property
associated with the Le Tigre brand during September 2007.  The
Companys products are targeted to appeal to fashion conscious consumers,
reflecting a modern hip perspective and a lifestyle uniquely associated with
Kenneth Cole.  These products include core basics that generally
remain in demand from season to season and fashion products that are designed to
establish or capitalize on market trends.  The combination of basic
products and fashion styles provides freshness in assortments and maintains a
fashion-forward image, while a multiple brand strategy helps diversify business
risk.  The Company markets its products to approximately 6,000 department
and specialty store locations, as well as through its Consumer Direct business,
which includes full-priced retail stores, Company Stores (outlets) and
e-commerce.  The Company believes the diversity of its productofferings distinguishes the Company from its
competitors in terms of product classifications (mens, womens and childrens
footwear, handbags, apparel and accessories), prices (from bridge, better
and moderate) and styling.  The Company believes the diversity of its
product mix provides balance to its overall product sales and business planning
and increases sales opportunities to Wholesale customers who do not carry the
Companys full range of products.   18     The popularity of the Kenneth Cole brand names, including
Kenneth Cole New York, Kenneth Cole Reaction and Unlisted,among
consumers has enabled the Company to expand its product offerings and channels
of distribution through licensing agreements.  The Company offers, through
these agreements, a lifestyle collection of mens product categories, including
tailored clothing, dress shirts, dress pants, neckwear, business cases, jewelry,
belts, leather and fabric outerwear, cold-weather accessories, sunglasses,
prescription eyewear, watches, fragrance, luggage, loungewear, underwear,
socks and small leather goods.  In addition, mens sportswear, which
was formerly offered pursuant to a license agreement, is being sold, marketed
and distributed by the Company directly.  Womens product categories
currently being sold pursuant to license agreements include sportswear, small
leather goods, belts, scarves and wraps, socks, loungewear, leather and fabric
outerwear, sunglasses, prescription eyewear, watches, jewelry, fragrance,
swimwear and luggage.  In addition, the Company licenses its childrens
apparel further broadening the branded lifestyle collection.  The Company recorded net revenues of $132.1 million for the three
months ended September 30, 2008.  Diluted earnings per share decreased to
$(0.09), including a non-operating impairment charge of $3.2 million, for the
three months ended September 30, 2008 from $0.17 for the three months ended
September 30, 2007.  Excluding a non-operating impairment charge of
$(0.18), earnings per share would have been $0.09 for the three months ended
September 30, 2008.  As of September 30, 2008, the Company had $51.0
million in cash and cash equivalents with no debt.  In addition, the
Company announced it will pay a quarterly cash dividend of $0.09 per share on
December 11, 2008, which will be paid to shareholders of record at the close of
business on November 20, 2008.  In addition to providing financial results and guidance in
accordance with GAAP, the Company has provided non-GAAP adjusted earnings per
share information for the three months ended September 30, 2008.  This
non-GAAP financial information is provided to enhance the user's overall
understanding of the Company's current financial performance.
 Specifically, the Company believes the non-GAAP adjusted results provide
useful information to both management and investors by excluding charges that
the Company believes are not indicative of the Company's core operating results.
 The non-GAAP financial information should be considered in addition to,
not as a substitute for or as being superior to, operating income, cash flows,
or other measures of financial performance prepared in accordance with GAAP.
 A reconciliation of this non-GAAP information to the Company's actual
results is included below.  Three Months EndedSeptember 30, 2008GAAP EPS

$(0.09)Impairment
Charge

$(0.18)Non-GAAP
EPS

$
 0.09   19    Results of Operations  The following table sets forth the Companys Condensed
Consolidated Statements of Operations in thousands of dollars and as a
percentage of net revenues for the three and nine months ended September 30,
2008 and September 30, 2007.  Three
Months Ended Nine
Months Ended September
30, September
30, 2008
2007

2008
2007Net sales
$120,161
91.0%
$118,644
91.0%

$333,669
91.2%
$346,849
91.6%Royalty revenue
11,947
9.0
11,669
9.0

32,087
8.8
31,751
8.4Net revenues
132,108
100.0
130,313
100.0

365,756
100.0
378,600
100.0Gross profit (1)
54,351
41.1
57,851
44.4

150,622
41.2
163,130
43.1Selling, general
and administrative expenses
51,896
39.3
53,794
41.3

150,113
41.1
150,921
39.9Operating income
2,455
1.8
4,057
3.1

509
0.1
12,209
3.2Interest and other (expense)/
income, net
(2,887)
(2.2)
1,525
1.2

(2,477)
(0.7)
4,340
1.2(Loss)/income before income 
           taxes
(432)
(0.4)
5,582
4.3

(1,968)
(0.6)
16,549
4.4Income tax expense
1,122
0.8
2,149
1.6

831
0.2
6,372
1.7Net (loss)/income
$(1,554)
(1.2)%
$   3,433
2.7%

$(2,799)
(0.8)%
$  10,177
2.7% _________________  (1) Gross Profit may not be comparable to other entities, since some
entities include the costs related to their distribution network (receiving and
warehousing) in cost of goods sold and other entities, similar to the Company,
exclude these costs from gross profit, including them instead in a line item
such as selling, general and administrative expenses.  Three Months Ended September 30, 2008 Compared to Three Months
Ended September 30, 2007  REVENUES:  Net revenues increased $1.8 million, or 1.4%, to
$132.1 million for the three months ended September 30, 2008 from $130.3 million
for the three months ended September 30, 2007.  The increase in revenues
occurred in the Companys Consumer Direct and Licensing segments as further
described below in the section entitled NET SALES.  NET
SALES: Wholesale net sales (excluding sales to the Companys Consumer Direct
business segment) decreased $1.2 million, or 1.6%, to $77.6 million, for the
three months ended September 30, 2008 from $78.8 million for the three months
ended September 30, 2007.  The decrease was primarily attributable to a
decline in sales across the Companys branded footwearbusinesses, offset
by incremental sales from the Companys in-house launch of its mens sportswear
collections previously licensed.  The challenging retail environment and
continued stress in the macro-economic marketplace, particularly the department
store channel, resulted in declines in most of the Companys Wholesale
businesses.  Net
sales in the Companys Consumer Direct segment increased $2.7 million, or 6.9%,
to $42.6 million for the three months ended September 30, 2008, from $39.9
million for the three months ended September 30, 2007.  Comparable store
sales increased 2.1%, or $0.7 million, while sales related to new stores opened
in 2008, and that portion of 2008 sales for stores not open for all of 2007,
increased by $1.9 million for the three months ended September 30, 2008 compared
to the three months ended September 30, 2007.  Comparable stores are
defined as new stores that are open for longer than thirteen months.  A
store that stops operations is included in the comparable sales calculation
through the date of closing. The
Company opened one Company Store during the three months ended September 30,
2008 as it continued its Company Store expansion.  As the Company has
increased the amount of specific made for Company Store product and focused
merchandising on key assortments, sales have improved at its Company Store
locations.In its full-priced retail
stores, the Company continued to standardize its assortment and modify its price
points to align the price-value  20    relationship of the Companys brands, and continues to review its
real estate portfolio for both its full-priced retail and Company Stores.  LICENSING REVENUE:  Royalty revenue increased $0.3 million,
or 2.4%, to $11.9 million for the three months ended September 30, 2008 from
$11.6 million for the three months ended September 30, 2007.  The increase
in licensing revenues was primarily attributable to improvement in sales from
international licensees and the launch of the Le Tigrebrand offset by a
reduction in sportswear royalties from an amendment to the Companys licensing
agreement relating to its mens sportswear businesses that terminated December
31, 2007.  As mentioned in the section entitled NET SALES, the Company
has begun shipping mens sportswear, effectively transitioning the licensing
model to an in-house operation.  GROSS
PROFIT:  Consolidated gross profit, as a percentage of net revenues,
decreased to 41.1% for the three months ended September 30, 2008 from 44.4% for
the three months ended September 30, 2007.  The decrease, as a percentage
of net revenues, was primarily the result of a decrease in the Wholesale and
Consumer Direct segment margins, partially offset by the sales and revenue mix
shifting to Consumer Direct and Licensing as a percentage of total sales.
 The Consumer Direct segment, which operates at a higher gross profit level
than the Wholesale segment, had increased revenues as a percentage of net
revenues to 32.3% for the three months ended September 30, 2008 compared to
30.6% for the three months ended September 30, 2007, while the Wholesale segment
revenues as a percentage of net revenues decreased to 58.7% for the three months
ended September 30, 2008 from 60.4% for the three months ended September 30,
2007.  The revenues in the Licensing segment, which carries no cost of
goods sold, remained flat as a percentage of revenue at 9.0% for the three
months ended September 30, 2008 and 2007.  The decrease in the Wholesale
segment margins was primarily due to lower initial mark-ups and higher
dilution from a promotional department store environment.  Consumer Direct
segment margins decreased primarily from higher markdowns in footwear.  SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:  Selling,
general and administrative (SG&A) expenses, including warehousing and
receiving expenses, decreased 3.5% to $51.9 million (39.3% of net revenue) for
the three months ended September 30, 2008 from $53.8 million (41.3% of net
revenues) for the three months ended September 30, 2007.  Expenses as a
percentage of net revenues decreased due to leverage from sales growth from
stores opened in 2008.  The decrease in SG&A of $1.9 million resulted
primarily from reduced discretionary expenses, headcount and non-cash
compensation costs offset by advertising and the Companys investment in the
development of mens sportswear.  INTEREST AND OTHER (EXPENSE)/INCOME:  Interest and other
(expense)/income decreased $4.4 million to approximately $(2.9) million for the
three months ended September 30, 2008, as compared to the three months ended
September 30, 2007.  The decrease is primarily due to the Company recording
an other-than-temporary impairment of $3.2 million for an investment in one of
its licensees.  The Company also had lower average cash balances and
average interest rates.  INCOME
TAXES:The Companys tax rate increased to 259.7% for the three
months ended September 30, 2008 from 38.5% for the three months ended September
30, 2007.  The increase in the Companys tax rate is primarily a result of
a valuation allowance of $1.2 million reserved against tax assets for certain
other-than-temporary investment impairments.  NET
(LOSS)/INCOME:  As a result of the foregoing, the Company recorded a net
loss of $1.6 million for the three months ended September 30, 2008 ((1.2)% of
net revenues) compared to net income of $3.4 million (2.7% of net revenues) for
the three months ended September 30, 2007.  Nine
Months Ended September 30, 2008 Compared to Nine Months Ended September 30,
2007  REVENUES:  Net revenues decreased $12.8 million, or 3.4%, to
$365.8 million for the nine months ended September 30, 2008 from $378.6 million
for the nine months ended September 30, 2007.  The decrease in revenues
occurred in the Companys Wholesale segment as further described below in the
section entitled NET SALES.  21     NET
SALES: Wholesale net sales (excluding sales to the Companys Consumer Direct
business segment) decreased $19.2 million, or 8.4%, to $209.6 million, for the
nine months ended September 30, 2008 from $228.8 million for the nine months
ended September 30, 2007.  The decrease is primarily due to a decline in
sales across the Companys branded footwearbusinesses, offset by
incremental sales from the Companys in-house launch of its mens sportswear
collections previously licensed.  The challenging retail environment and
continued stress in the macro-economic marketplace, as well as generally softer
sell-thrus compared to the prior year, resulted in declines in most of the
Companys Wholesale businesses.  Net
sales in the Companys Consumer Direct segment increased $6.1 million, or 5.2%,
to $124.1 million for the nine months ended September 30, 2008, from $118.0
million for the nine months ended September 30, 2007.  Comparable store
sales increased 2.2%, or $2.3 million, while sales related to new stores opened
in 2008, and that portion of 2008 sales for stores not open for all of 2007,
increased by $2.5 million for the nine months ended September 30, 2008 compared
to the nine months ended September 30, 2007.  Comparable stores are defined
as new stores that are open for longer than thirteen months.  A store that
stops operations is included in the comparable sales calculation through the
date of closing. The remaining
increase of $1.3 million was a result of internet sales.  The Company
opened two full-priced retail stores and closed eight, while continuing its
expansion in Company Stores by opening seven stores during the nine months ended
September 30, 2008.  As the Company has increased the amount of specific
made for Company Store product and focused merchandising on key assortments,
sales have improved at its Company Store locations.In its full-priced retail stores, the
Company continued to standardize its assortments and modify its price points to
align the price-value relationship of the Companys brands and continues to
review its real estate portfolio for both its full-priced retail and Company
stores.  LICENSING REVENUE:  Royalty revenue increased $0.3 million to
$32.1 million for the nine months ended September 30, 2008 from $31.8 million
for the nine months ended September 30, 2007.  Incremental royalties
received from existing licensees and the launch of the Le Tigrebrand
were offset by a decrease in licensing revenues attributable to a reduction in
sportswear royalties from an amendment to the Companys licensing agreement
relating to its mens sportswear businesses that terminated December 31, 2007.
 As mentioned in the section entitled NET SALES, the Company has begun
shipping mens sportswear, effectively transitioning the licensing model to an
in-house operation.  GROSS
PROFIT:  Consolidated gross profit, as a percentage of net revenues,
decreased to 41.2% for the nine months ended September 30, 2008 from 43.1% for
the nine months ended September 30, 2007.  The decrease, as a percentage of
net revenues, was primarily the result of a decrease in the Wholesale and
Consumer Direct segment margins, partially offset by the sales and revenue mix
shifting to Consumer Direct and Licensing as a percentage of total sales.
 The Consumer Direct segment, which operates at a higher gross profit level
than the Wholesale segment, had increased revenues as a percentage of net
revenues of 33.9% for the nine months ended September 30, 2008 compared to 31.2%
for the nine months ended September 30, 2007, while the Wholesale segment
revenues as a percentage of net revenues decreased to 57.3% for the nine months
ended September 30, 2008 from 60.4% for the nine months ended September 30,
2007.  The revenues in the Licensing segment, which carries no cost of
goods sold, increased as a percentage of revenue to 8.8% for the nine months
ended September 30, 2008 compared to 8.4% for the nine months ended September
30, 2007.  The decrease in the Wholesale segment margins was primarily due
to soft sell-thrus and higher dilution from a promotional department store
environment.  The decrease in Consumer Direct margins was primarily from
higher markdowns in footwear.  SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:  SG&A
expenses, including warehousing and receiving expenses, decreased $0.9 million
to $150.1 million for the nine months ended September 30, 2008 from $151.0
million for the nine months ended September 30, 2007.  The decrease in
SG&A expenses was primarily attributable to a reduction in variable expenses
from sales declines within the Wholesale segment offset by the Companys
investment in the development of mens sportswear.  As a percentage of net
revenues, SG&A expenses increased to 41.1% for the nine months ended
September 30, 2008 from 39.9% for the nine months ended September 30, 2007 from
loss of leverage on the decrease in Wholesale sales and the greater portion of
revenues from the Consumer Direct segment which carries a  22    higher
SG&A expense level than the Wholesale and Licensing segments due primarily
to store occupancy and store payroll costs.  INTEREST AND OTHER (EXPENSE)/INCOME:  Interest and other
expense/income decreased $6.8 million to approximately $(2.5) million for the
nine months ended September 30, 2008, as compared to the nine months ended
September 30, 2007.  The decrease is primarily due to the Company recording
an other-than-temporary impairment of $3.2 million for an investment in one of
its licensees as well as a writedown to certain of the Companys marketable
securities, specifically auction rate securities, of $0.9 million.  In
addition, the Company had lower average cash balances and average interest
rates.  INCOME
TAXES:The Companys tax rate increased to 42.2% for the nine
months ended September 30, 2008 from 38.5% for the nine months ended September
30, 2007.  The increase in the Companys tax rate is a result of a
valuation allowance of $1.2 million reserved against tax assets for certain
other-than-temporary investment impairments and the impact of interest and
penalties on income tax reserves offset by the tax benefit from the Companys
net loss.  NET
(LOSS)/INCOME:  As a result of the foregoing, the Company recorded a net
loss of $2.8 million for the nine months ended September 30, 2008 ((0.8)% of net
revenues) compared to net income of $10.2 million (2.7% of net revenues) for the
nine months ended September 30, 2007.  New
Accounting Pronouncements  In March 2008, the FASB issued SFAS No. 161,
Disclosures about Derivative Instruments and Hedging Activities, an
amendment of FASB Statement No. 133 (SFAS 161).  SFAS 161
amends and expands the disclosure requirements of SFAS No. 133,
Accounting for Derivative Instruments and Hedging Activities.SFAS 161 is effective for financial statements issued for fiscal years
and interim periods beginning after November 15, 2008.  The Company
expects that SFAS 161 will not have a material impact on the Companys
consolidated financial statements.  In April 2008, the FASB issued FASB Staff Position FAS 142-3,
Determination of the Useful Life of Intangible Assets (FSP 142-3).
 FSP 142-3 amends the factors that should be considered in developing
renewal or extension assumptions used to determine the useful life of a
recognized intangible asset under SFAS No. 142, Goodwill and Other
Intangible Assets (SFAS 142).  The intent of FSP 142-3 is to improve
the consistency between the useful life of a recognized intangible asset under
SFAS 142 and the period of expected cash flows used to measure the fair value of
the asset under SFAS No. 141R Business Combinations and other
applicable accounting literature.  FSP 142-3 is effective for financial
statements issued for fiscal years beginning after December 15, 2008 and must be
applied prospectively to intangible assets acquired after the effective date.
 The Company expects that FSP 142-3 will not have a material impact on the
Companys consolidated financial statements.  In May 2008, the FASB issued SFAS No. 162, Hierarchy of
Generally Accepted Accounting Principles(SFAS 162).  This statement
is intended to improve financial reporting by identifying a consistent
framework, or hierarchy, for selecting accounting principles to be used in
preparing financial statements of nongovernmental entities that are presented in
conformity with GAAP.  This statement will be effective sixty days
following the U.S. Securities and Exchange Commissions approval of the Public
Company Accounting Oversight Board amendment to AU Section 411, The Meaning
of Present Fairly in Conformity with Generally Accepted Accounting
Principles.  The Company is currently evaluating the impact of SFAS
162 on the Companys consolidated financial statements.  In October 2008, the FASB issued Staff Position No. FAS
157-3, Determining the Fair Value of a Financial Asset When the Market for
That Asset Is Not Active (FSP 157-3) which clarifies the application of
SFAS No. 157 Fair Value Measurements in an inactive market and
illustrates how an entity would determine fair value when the market for a
financial asset is not active.  The Staff Position is effective immediately
and applies to prior periods for which financial statements have not been
issued, including interim or annual periods ending on or before
September 30,  23    2008.
 The implementation of FSP 157-3 did not have a material impact on the
Companys consolidated financial statements.  Related Party Transactions  The Company has an exclusive license agreement with Iconix Brand
Group, Inc. and its trademark holding company, IP Holdings, LLC (Iconix), to
use the Bongo trademark in connection with the manufacture, sale and
distribution of womens, mens and childrens footwear in certain territories.
 The Chief Executive Officer and Chairman of Iconix is the brother of the
Companys Chairman and Chief Creative Officer.  The term of the agreement
is through December 31, 2010.  Management believes that the license
agreement with Iconix was entered into at arms-length.  During these
periods, the Company is obligated to pay Iconix a percentage of net sales based
upon the terms of the agreement.  The Company recorded approximately
$284,000 and $857,000 in aggregate royalty and advertising expense under the
agreement for the three- and nine-month periods ended September 30, 2008,
respectively.  The Company recorded approximately $330,000 and $841,000 in
aggregate royalty and advertising expense under the agreement for the three- and
nine-month periods ended September 30, 2007, respectively.  The Company recorded expenses of approximately $161,000 and
$427,000 for the three and nine months ended September 30, 2008, respectively,
to a third-party aviation company which hires and uses an aircraft partially
owned by Emack LLC, a company which is wholly owned by the Companys Chairman
and Chief Creative Officer.  During the three and nine months ended
September 30, 2007, the Company recorded expenses of approximately $111,000 and
$340,000, respectively, for hire and use of aircraft partially owned by Emack
LLC. Management believes that all transactions were made on terms and conditions
similar to or more favorable than those available in the marketplace from
unrelated parties.  Liquidity and Capital Resources  As of September 30, 2008, the Company had $51.0 million in cash
and cash equivalents, which consist primarily of prime and government money
market funds.  The Company uses cash from operations as the primary source
of financing for its capital expenditures, seasonal requirements and paying its
quarterly dividends.  Cash requirements vary from time to time as a result
of the timing of the receipt of merchandise from suppliers, the delivery by the
Company of merchandise to its customers and the level of accounts receivable and
due from factors balances.  At September 30, 2008 and December 31, 2007,
working capital was $112.8 million and $139.4 million, respectively.  Cash used in operating activities was $0.9 million for the nine
months ended September 30, 2008, compared to $13.6 million provided by operating
activities for the nine months ended September 30, 2007. The
decrease in cash flows provided by operations is primarily attributable to a
decrease in net income and the timings of receivables and payables.  Net cash used in investing activities totaled $8.6 million for the
nine months ended September 30, 2008 compared to $18.4 million for the nine
months ended September 30, 2007.  The decrease was primarily attributable
to a $10.2 million decrease in the purchases of intangible assets.
 Included in the purchases of intangible assets during the nine months
ended September 30, 2008 is a $2.5 million payment related to achieving one of
the performance targets within the Le TigreAsset Purchase Agreement
Amendment compared to a payment of $13.0 million used to purchase the Le
Tigretrademark and other intellectual property associated with the brand
during the nine months ended September 30, 2007.  Capital expenditures
decreased $3.2 million during the nine months ended September 30, 2008 compared
to September 30, 2007.  Included in capital expenditures for the nine
months ended September 30, 2008 and 2007 were approximately $3.5 million and
$3.3 million, respectively, for amounts associated with furniture, fixtures and
leasehold improvements for retail store expansion and $4.0 million in costs for
the implementation of the SAP retail and POS systems in 2007.
   In addition, the Company did not purchase or sell any
marketable securities during the nine months ended September 30, 2008, compared
to sales of marketable securities of $8.4 million offset by purchases of $4.7
million in 2007.   24    Net cash used in financing activities was $30.1 million for the
nine months ended September 30, 2008 compared to $12.5 million for the nine
months ended September 30, 2007.  The increase was primarily attributable
to $24.4 million used to repurchase 1,619,200 treasury shares during the nine
months ended September 30, 2008 as compared to $5.6 million used to repurchase
282,300 treasury shares during the nine months ended September 30, 2007.
 The Company also paid dividends of $5.2 million during the nine months
ended September 30, 2008 compared to $11.0 million during the nine months ended
September 30, 2007.  In addition, the Company had received proceeds of $0.1
million during the nine months ended September 30, 2008 related to stock option
exercises as compared to $3.6 million received during the nine months ended
September 30, 2007.  The Company has a Revolving Credit Facility (the Facility) with
various lenders, which provides up to $100.0 million to finance working capital
requirements and letters of credit to finance the Company's inventory purchases
based on a maximum leverage ratio of 2.25 to 1.0 of consolidated debt to
consolidated earning before interest, non-cash compensation, income taxes and
depreciation as defined in the Facility.  During the nine months ended
September 30, 2008, the Company did not borrow under the Revolving Credit
Facility.  Amounts available under the Revolving Credit Facility were
reduced by $3.5 million of standby and open letters of credit.  The Company believes that it will be able to satisfy its current
expected cash requirements for 2008, including requirements for its in-house
sportswear infrastructure, enhanced information systems, store expansions and
the payments of its quarterly cash dividend, primarily with cash flow from
operations and cash on hand.  The Company did not have any off-balance
sheet arrangements as of September 30, 2008.  The foregoing commentary should be considered to fall within the
coverage of the Safe Harbor Statement under the Private Securities
Litigation reform Act of 1995 included in this report.  Item 3.
 Quantitative and Qualitative Disclosures About Market Risk  The Company has marketable securities that contain triple A
rated auction rate debt obligations and a preferred share close end fund that
are substantially all insured.  All of the Companys auction rate
securities have failed at auction as a result of illiquidity and imbalance in
order flow within the market.  A failed auction is not an indication of an
increased credit risk or a reduction in the underlying collateral; however,
parties wishing to sell securities could not do so.  Based on current
market conditions, it is not known when or if the capital markets will come back
into balance to achieve successful auctions for these securities.  If these
auctions continue to fail, it could result in the Company holding securities
beyond their next scheduled auction reset dates and will limit the liquidity of
these investments.  Based on the Companys expected operating cash flows,
and other sources and uses of cash, the Company does not anticipate that the
lack of liquidity on these investments will affect its ability to execute its
current business plan.  The Company is exposed to currency exchange rate risks with
respect to its inventory transactions denominated in Euro.  Business
activities in various currencies expose the Company to the risk that the
eventual net dollar cash flows from transactions with foreign suppliers
denominated in foreign currencies may be adversely affected by changes in
currency rates.  The Company manages these risks by utilizing foreign
exchange contracts.  The Company does not enter into foreign currency
transactions for speculative purposes.  At September 30, 2008, the Company had a forward contract totaling
$0.7 million in notional value with an unrealized loss of approximately $25,000,
net of taxes.  The Companys earnings may also be affected by changes in
short-term interest rates as a result of borrowings that may be made under its
credit facilities.  A two or less percentage point increase in interest
rates affecting the Companys credit facilities would not have had a material
effect on the Companys net income.  The Company sources a significant amount of product from China and
is subject to foreign currency exposure. If the Yuan is allowed to float freely
against other foreign currency, a two percent change in exchange rates could
have a material effect on the cost of future inventory purchases to be
transacted by the Company.   25     Item
4.  Controls and Procedures  Evaluation of disclosure controls and procedures  The Companys Chief Executive Officer and Chief Financial Officer
have evaluated the effectiveness of the Companys disclosure controls and
procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities
Exchange Act of 1934 (the Exchange Act), as amended) as of the end of the
period covered by this quarterly report, and have concluded that the Companys
disclosure controls and procedures were effective and designed to ensure that
all material information required to be disclosed by the Company in reports
filed or submitted under the Exchange Act is (1) recorded, processed, summarized
and reported within the time periods specified in the Securities and Exchange
Commission rules and forms, and (2) accumulated and communicated to the
Companys management, including the Companys Chief Executive Officer and Chief
Financial Officer, to allow timely decisions regarding required disclosures.  Changes in internal control over financial reporting  There were no changes in the Companys internal controls over
financial reporting during the period covered by this report that have
materially affected, or are reasonably likely to materially affect, the
Companys internal control over financial reporting.   Part II - OTHER
INFORMATION   Item 1. Legal Proceedings.  There have been no
material changes during the quarterly period ended September 30, 2008 from the
legal proceedings previously disclosed in the Companys Annual Report on Form
10-K for the year ended December 31, 2007 and within the Companys Form 10-Q for
the quarterly period ended March 31, 2008.   Item
1A.  Risk Factors.  There have been no material changes during
the quarterly period ended September 30, 2008 from the risk factors previously
disclosed in the Companys Annual Report on Form 10-K for the year ended
December 31, 2007, other than the following:  The
Companys ability to collect receivables could be impacted by adverse economic
conditions.  The
Company has significant balances with its factors.  If the global credit
markets deteriorate or economic conditions worsen, the Company may be exposed to
potential significant write-offs in the event of bankruptcy by its factors that
could adversely impact its financial results.  In addition, challenging
economic conditions may impair the ability of the Companys customers to pay for
products.  As a result, reserves for doubtful accounts and write-offs of
accounts receivable may increase.   26    Item 2. Unregistered Sales of Equity Securities and Use of
Proceeds.  During
the three months ended September 30, 2008, the Company repurchased 337,200
shares of its own stock, as presented in the following table:  Period
(a) Total
Number of Shares (or Units) Purchased
(b) Average
Price Paid per Share
(or
Unit)
(c) Total
Number of Shares (or Units) Purchased as Part of Publicly Announced Plans
or Programs
(d) Maximum
Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be
Purchased Under the Plans or Programs (1)July
2008
337,200
$13.07
337,200
3,072,800Total
337,200
$13.07
337,200
3,072,800  (1) As
of December 31, 2007, the remaining amount of shares that could be repurchased
was 692,000.  On March 3, 2008, the Companys Board of Directors increased
the authorization for the Companys stock buyback plan by 4,000,000 shares to
4,692,000 shares available for repurchase.  As of September 30, 2008, the
remaining amount of shares that could be repurchased was 3,072,800.   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.  31.1
Certification of Chief Executive Officer pursuant to
Securities Exchange Act Rule 13a-14 and 15d-14, as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.31.2
Certification of Chief Financial Officer pursuant to
Securities Exchange Act Rule 13a-14 and 15d-14, as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.32.1
Certification
of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2
Certification
of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.  27     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
10, 2008 /s/
DAVID P. EDELMAN David
P. Edelman Chief
Financial Officer   28


Exhibit 31.1  CERTIFICATION OF CHIEF EXECUTIVE OFFICER  I, Jill
Granoff, certify that:  1.
 I have reviewed this quarterly report on Form 10-Q of Kenneth Cole
Productions, Inc.;  2.
 Based on my knowledge, the report does not contain any untrue statement of
a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by the report;  3.
 Based on my knowledge, the financial statements, and other financial
information included in the report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as
of, and for, the periods presented in the report;  4.
 The registrants other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
registrant and have:  (a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being
prepared;  (b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;  (c) Evaluated the effectiveness of the registrants disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and  (d) Disclosed in this report any change in the registrants internal
control over financial reporting that occurred during the registrants most
recent fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrants internal control over financial reporting;
and       5.
 The registrants other certifying officer and I have disclosed, based on
our most recent evaluation of internal control over financial reporting, to the
registrants auditors and the audit committee of the registrants board of
directors (or persons performing the equivalent functions):  (a) All significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize and report financial information; and  (b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrants internal control
over financial reporting.     By: /s/
JILL GRANOFF -------------------------------------- Jill
Granoff Chief
Executive Officer    Date:  November
10, 2008                            Exhibit
31.2  CERTIFICATION OF CHIEF FINANCIAL OFFICER  I,
David P. Edelman, certify that:  1.
 I have reviewed this quarterly report on Form 10-Q of Kenneth Cole
Productions, Inc.;  2.
  Based on my knowledge, the report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by the report;  3.
 Based on my knowledge, the financial statements, and other financial
information included in the report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as
of, and for, the periods presented in the report;  4.
 The registrants other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
registrant and have:  (a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being
prepared;  (b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;  (c) Evaluated the effectiveness of the registrants disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and  (d) Disclosed in this report any change in the registrants internal
control over financial reporting that occurred during the registrants most
recent fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrants internal control over financial reporting;
and       5.
 The registrants other certifying officer and I have disclosed, based on
our most recent evaluation of internal control over financial reporting, to the
registrants auditors and the audit committee of the registrants board of
directors (or persons performing the equivalent functions):  (a) All significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize and report financial information; and  (b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrants internal control
over financial reporting.     By: /s/
DAVID P. EDELMAN ---------------------------------------- David
P. Edelman Chief
Financial Officer     Date:  November
10, 2008                           Exhibit 32.1 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS
ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002  In connection with the Quarterly Report of Kenneth Cole
Productions, Inc. (the Company) on Form 10-Q for the period ending September
30, 2008 as filed with the Securities and Exchange Commission on the date hereof
(the Report), I, Jill Granoff, Chief Executive Officer of the Company,
certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to §906 of the
Sarbanes-Oxley Act of 2002, that: (1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934, as amended; and (2)
The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company.  /s/
JILL GRANOFF  Jill
GranoffChief Executive OfficerKenneth Cole Productions, Inc November
10, 2008            Exhibit 32.2 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS
ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002  In connection with the Quarterly Report of Kenneth Cole
Productions, Inc. (the Company) on Form 10-Q for the period ending September
30, 2008 as filed with the Securities and Exchange Commission on the date hereof
(the Report), I, David P. Edelman, Chief Financial Officer of the Company,
certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to §906 of the
Sarbanes-Oxley Act of 2002, that: (1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934, as amended; and (2)
The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company.  /s/
DAVID P. EDELMAN  David
P. EdelmanChief Financial OfficerKenneth Cole Productions, Inc.
November 10, 2008