<PAGE>
                SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                            Form 10-K
        ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
               THE SECURITIES EXCHANGE ACT OF 1934

       For the fiscal year ended December 31, 1999
                 Commission File No. 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)

                            (212) 265-1500
                     Registrant's telephone number

   Securities registered pursuant to Section 12(b) of the Act:

                                                    Name of Each Exchange
  Title of Each Class                               on Which Registered

  Class A common stock, par value $.01 per share    New York Stock Exchange

   Securities registered pursuant to Section 12 (g) of the Act:
                              None

      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 if disclosure of delinquent  filers
pursuant  to Item 405 of Regulation S-K is not contained  herein,
and  will  not  be  contained, to the best  of  the  registrant's
knowledge,   in   definitive  proxy  or  information   statements
incorporated by reference in Part III of this Form  10-K  or  any
amendment to this Form 10-K.   (  )

       Aggregate  market  value  of  the  voting  stock  held  by
nonaffiliates  of the registrant as of the close of  business  on
March 27, 2000: $441,874,645

      Number  of shares of Class A Common Stock, $.01 par  value,
outstanding as of the close of business on
March 27, 2000: 12,060,567

       Number of shares of Class B Common Stock, $.01 par  value,
outstanding as of the close of business on
March 27, 2000: 5,785,398

               DOCUMENTS INCORPORATED BY REFERENCE
The information required by Part III of Form 10-K is incorporated
herein by reference to the Registrant's definitive proxy
statement to be mailed to the shareholders of the Registrant by
April 29, 2000.

<PAGE>
                 Kenneth Cole Productions, Inc.
                        TABLE OF CONTENTS

                                                               Page
                             PART I

 Item  1  Business                                               3

 Item  2  Properties                                             15

 Item  3  Legal Proceedings                                      15

 Item  4  Submission of Matters to a Vote of Security Holders    15

                             PART ll

 Item  5  Market for Registrant's Common Equity and
          Related Shareholder Matters                            16

 Item  6  Selected Financial Data                                17

 Item  7  Management's Discussion and Analysis of Financial
          Condition and Results of Operations                    18

 Item  7A Quantitative and Qualitative Disclosures about
          Market Risk                                            22

 Item  8  Financial Statements and Supplementary Data            22

 Item  9  Changes in and Disagreements with Accountants
          on Accounting and Financial Disclosure                 22

                             PART lll

 Item  10 Directors and Executive Officers of the Registrant     23

 Item  11 Executive Compensation                                 23

 Item  12 Security Ownership of Certain Beneficial Owners
          and Management                                         23

 Item  13 Certain Relationships and Related Transactions         23

                             PART lV

 Item  14 Exhibits, Financial Statement Schedules and Reports
          on Form 8-K                                            24

<PAGE>

Item 1.   Business

Important Factors Relating to Forward Looking Statements

   The  Private  Securities Litigation Reform Act  of  1995  (the
"Act")  and  Section 21E of the Securities Exchange Act  of  1934
provides a safe harbor for forward-looking statements made by  or
on behalf of Kenneth Cole Productions, Inc. (the "Company").  The
Company  and  its  representatives may from  time  to  time  make
written  or oral statements that are "forward-looking," including
statements  contained in this report and other filings  with  the
Securities  and  Exchange  Commission  and  in  reports  to   the
Company's  shareholders.   Forward-looking  statements  generally
refer  to future plans and performance and are identified by  the
words  "believe,"  "expect," "anticipate," "intend,"  "will,"  or
similar  expressions.   All statements that express  expectations
and  projections  with respect to future matters,  including  the
launching or prospective development of new business initiatives,
"Year  2000"  issues,  future  licensee  sales  growth,  and  the
introduction  of  the Euro are forward-looking statements  within
the  meaning of the Act.  These statements are made on the  basis
of  management's  views  and assumptions,  as  of  the  time  the
statements  are  made,  regarding  future  events  and   business
performance.    There   can  be  no  assurance,   however,   that
management's expectations will necessarily come to pass. A number
of  factors affecting the Company's business and operations could
cause actual results to differ materially from those contemplated
by  the  forward-looking statements.  Those factors include,  but
are  not  limited  to, demand and competition for  the  Company's
products,  changes  in consumer preferences  on  fashion  trends,
delays in anticipated store openings and changes in the Company's
relationship with its suppliers and other resources.   This  list
of factors that may affect future performance and the accuracy of
forward-looking  statements  is illustrative,  but  by  no  means
exhaustive.   Accordingly, readers of this Annual  Report  should
consider  these  facts  in  evaluating the  information  and  are
cautioned  not  to  place undue reliance on  the  forward-looking
statements contained herein.

General

   Kenneth Cole Productions, Inc. incorporated in September 1982,
designs,  sources  and markets a broad range of fashion  footwear
and handbags, and through license agreements, designs and markets
apparel and accessories under its Kenneth Cole New York, Reaction
Kenneth   Cole  and  Unlisted.com  brand  names.   The  Company's
products  are targeted to appeal to fashion conscious  consumers,
reflecting  a  casual urban perspective and a lifestyle  uniquely
associated with Kenneth Cole. These products include core basics,
which  generally  remain in demand from  season  to  season,  and
fashion products that are designed to establish or capitalize  on
market  trends.  The  combination of basics  and  fashion  styles
provides freshness in assortments and maintains a fashion-forward
image,  while  a  multiple  brand strategy,  helps  insulate  the
Company from a temporary downturn in business.

   The Company markets its products to more than 3,700 department
and  specialty store locations, as well as through  its  consumer
direct  business, which includes an expanding base of retail  and
outlet   stores,  consumer  catalogs  and  interactive  websites,
including  an on-line store.  The Company believes the  diversity
of  its  product  offerings 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  ''better''  to  ''moderate'')  and  styling.   The
diversity  of the Company's 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.

   The popularity of the Kenneth Cole brand names among consumers
has  enabled  the  Company  to  selectively  expand  its  product
offerings   and   channels  of  distribution  through   licensing
agreements. The Company, through licensing agreements,  offers  a
lifestyle   collection  of  men's  product  categories  including
tailored    clothing,   dress   shirts,   sportswear,   neckwear,
briefcases,  portfolios,  jewelry, belts,  scarves,  leather  and
fabric outerwear, sunglasses, eyewear, watches, luggage, hosiery,
underwear,  robes,  loungewear and small leather  goods.   During
1999, the Company entered into a major multi-brand initiative  to
launch  women's apparel and will begin selling Kenneth  Cole  New
York  sportswear for the Fall 2000 season. Other  women's product
categories  currently being sold pursuant to  license  agreements
include  small  leather goods, hats, gloves, scarves  and  wraps,
leather  and  fabric  outerwear,  sunglasses,  eyewear,  watches,
jewelry, luggage and sportswear.

Business Growth Strategies

   The  Company's  strategy  is to continue  to  build  upon  the
strength of its lifestyle brand franchise, which is comprised  of
three  well-differentiated and distinct brands: Kenneth Cole  New
York,  Reaction Kenneth Cole and Unlisted.com.  The Company views
its  lifestyle brands as a vital and significant strategic  asset
and  the foundation for a sustainable competitive advantage.  The
further  segmentation and development of the three brands  afford
enormous  growth potential within each of the Company's  business
segments.

   Wholesale.  By  strengthening and streamlining its  department
store  distribution channels, the Company continues to  reinforce
the  segmentation of its three brands at wholesale, ensuring even
greater   growth  capability  for  each  in  the   future.   This
facilitates  the broadening of product offerings, which  attracts
new  customers and further enables the Company to address a wider
variety   of  customers'  needs  domestically  and  abroad.    By
combining  retail  and  wholesale  merchandising  functions,  the
Company  is  in a greater position to quickly respond  to  market
changes  enabling each wholesale division to deliver  appropriate
fashions  in  a more timely and effective manner.  This  approach
has  been  effective  in  turning  around  the  women's  footwear
business in a difficult and challenging environment.

   Consumer Direct. The Company's Consumer Direct segment,  which
operates full price retail as well as outlet stores, catalogs and
e-commerce    affords   significant   growth   potential    while
simultaneously complementing the existing wholesale and licensing
businesses.   The  Company believes that the sales  of  footwear,
handbags  and  licensed  products  through  its  consumer  direct
channels  of  distribution  increase consumer  awareness  of  the
Company's  brands, reinforce the Company's image and build  brand
equity.  Wholesale customers in cities with a Kenneth Cole retail
presence consistently perform better than those without.

   The  Company continues to pursue opportunities to  expand  its
retail  store operations.  As of December 31, 1999,  the  Company
operated  61 specialty retail and outlet stores as compared  with
54  stores as of December 31, 1998. The Company plans to open  or
expand  approximately  8 to 11 stores in 2000,  expanding  retail
square  footage  by  approximately 35% to  40%.   This  expansion
includes  outlet  stores,  which provide  opportunities  for  the
Company  to  sell  excess and out-of-season merchandise,  thereby
reducing  the need to sell such merchandise through  its  regular
off-price   channels  of  distribution  or  to   discounters   at
excessively  low prices.  To accommodate the Company's  diversity
of  product  offerings, larger format stores were  introduced  in
late  1998  and additional locations are being planned for  2000.
The  Company  believes  that  these  larger  format  stores  will
generate  increased sales and profitability as  this  new  retail
model  allows  for  a  true-cross section  of  both  Company  and
licensee products, enabling the Company to present a fairly broad
lifestyle  offering that the consumer wants to see.  In addition,
the  Company  believes  that there will be certain  economies  in
several selling and administrative expense areas.

    The   Company  continues  to  invest  significantly  in   the
enhancement, visual presentation and development of its  websites
to  capitalize  on  the  growth  of  the  Internet  and  emerging
technologies.  The Company believes that e-commerce  will  be  an
integral  contributor  in the Company's future  as  a  source  of
consumer  information and as a generator  of  new  revenue.   The
websites  are designed to, among other things, create  additional
revenues through a new distribution channel, build brand  equity,
fortify  image,  increase  consumer awareness,  improve  customer
service,  promote  supporting  causes  the  Company  believes  is
important to its customers and provide entertainment. The Company
has  strengths in its existing capabilities in customer  service,
including  multiple toll-free telemarketing lines, merchandising,
catalog,  fulfillment and e-commerce.  Accordingly,  the  Company
believes  it has a strategic advantage over those just  beginning
with on-line commerce.

   In  addition  to  seasonal  image  campaigns  via  traditional
advertising  media,  the  Internet has  enabled  the  Company  to
communicate  directly with its customers and have  its  customers
communicate directly with the Company.  The Company believes this
dynamic relationship is invaluable for building customer loyalty.
Further,   the  Company's  Internet  presence  through   multiple
websites  has  enabled  the  creation  of  a  substantial  e-mail
database  by  which  marketing  and  customer  service  regularly
interacts with existing and new customers on-line.

  Licensing.  The growing strength of the Company's three brands,
Kenneth  Cole  New York, Reaction Kenneth Cole and  Unlisted.com,
provides  opportunities, through licensing agreements, to  extend
into  new  product  categories and broaden existing  distribution
channels.   Licensed  product sales continued  to  grow  and  now
represent about half of the Company's brand sales at retail. Last
year's  licensee sales included the roll out of men's  sportswear
and  dress shirts.  Most of the existing licensee businesses  are
still relatively new in their individual  product classifications
and hold impressive growth potential.

   The  Company  chooses its licensing partners  very  carefully,
placing  great importance on the strength of their  sourcing  and
distribution  abilities to ensure the same value and  style  that
Kenneth  Cole  customers  have  come  to  expect.  Within   these
strategic parameters the Company entered into a major multi-brand
initiative to launch the Company into the women's apparel  market
under  an  exclusive womenswear license agreement with  L.C.K.C.,
LLC,  a  division of Liz Claiborne, Inc. ("Liz Claiborne  Inc.").
Under  the agreement, Liz Claiborne Inc. will produce the Kenneth
Cole  New York collection of women's contemporary sportswear  for
the  Fall  2000 season, followed by the launch of a  junior  line
under the Reaction Kenneth Cole brand and the launch of a women's
status denim and sportswear line under the Unlisted.com brand  in
2001.   The Company believes that women's apparel will grow  into
its  largest  licensee product classification  and  will  further
define  and enhance the Company's brands, enabling it  to  better
deliver exactly what the customer is looking for.

   The  Company's brands are currently licensed for  a  range  of
products consistent with the Company's image (see "Licensing"  in
Item 1).

Products

   The Company markets its products principally under its Kenneth
Cole  New  York,  Reaction Kenneth Cole  and  Unlisted.com  brand
names;  each  are targeted to appeal to different consumers.  The
Company  believes that the Kenneth Cole brand name has  developed
into  a  true aspirational lifestyle brand; while having  similar
designer  cache  as other international designer brands,  it  has
value credibility most do not.

  Kenneth Cole New York

   Kenneth Cole New York products are generally designed for  the
fashion   conscious  consumer  and  reflect  the  relaxed   urban
sophistication that is the hallmark of the Kenneth Cole New  York
image.  The  distinctive hip styling of this line has established
Kenneth  Cole as a fashion authority for sophisticated urban  men
and  women who are seeking a value alternative to other  designer
brands.   As  a result of strong brand recognition and reputation
for  style, quality and value, the Company believes that  Kenneth
Cole  New  York has become a core resource for better  department
and  specialty  stores, continuing to provide significant  growth
opportunities.   The  product offering has evolved  from  a  very
trendy  line  to  one with broad appeal, including  both  fashion
forward  styling  and  core  basics.  The  Company  continues  to
leverage the strength of the name through brand extensions (e.g.,
Kenneth  Cole  Collection), in-store shops and the  licensing  of
many new product categories.

  Kenneth Cole New York men's footwear, primarily manufactured in
Italy,  is designed as contemporary, comfortable fashion footwear
and  is sold to the bridge-designer market at retail price points
ranging  from $150 to $190.  As versatile as it is sophisticated,
Kenneth Cole New York men's footwear may be worn to work,  for  a
special occasion or on weekends with casual clothes.

   Kenneth Cole New York women's footwear, primarily manufactured
in  Italy  and  Spain, includes sophisticated and elegant  dress,
casual  and  special occasion (e.g., bridal) and is sold  to  the
bridge-designer market at retail price points ranging  from  $130
to  $200.  Women's footwear is generally constructed with leather
soles and linings and fabric uppers.

   Kenneth Cole New York handbags are sleek designer bags offered
at  affordable prices, generally made of quality leathers and are
sold to the bridge-designer market at retail price points ranging
from $70 to $295.  Certain updated styles offer the customer high
fashion  day  bags, while evening bags make strong  sophisticated
statements in satins and updated silhouettes.

     Reaction Kenneth Cole

   Reaction  Kenneth  Cole  consists  of  a  variety  of  product
classifications, which address the growing trend toward  flexible
lifestyle  dressing.  Originally introduced as a comfort-oriented
casual  line,  Reaction  Kenneth Cole now  includes  more  dressy
styles.   Reaction Kenneth Cole women's footwear is designed  for
the workplace as well as outside the office, with an emphasis  on
comfort,  contemporary  styling  and  perceived  value.   It   is
targeted  to  compete in the largest single category of  footwear
sold  in  department  stores, "women's better"  casual,  and  the
majority  of  the  line retails in the $70 to $110  price  range.
Reaction  Kenneth  Cole men's footwear combines  fashionable  and
versatile  styling with affordable pricing and is  positioned  in
the  fastest  growing  classification  in  the  men's  market  as
consumer preferences lean away from athletic constructed footwear
toward  regular constructed footwear.  This line retails  in  the
$100 to $135 price range.

    Reaction   Kenneth   Cole  handbags  are   designed   to   be
multifunctional with a contemporary look and are  primarily  made
of  non-leather technical fabrications, such as nylon, microfiber
and  canvas.  Reaction Kenneth Cole Reaction handbags,  including
Essentials, Itemize and the Reactive collections, are one of  the
fastest growing product classifications and have been created  to
meet  the  varying needs of the Company's customers.   This  line
generally retails at price points ranging from $25 to $90.

    Reaction   Kenneth   Cole  children's   footwear,   primarily
manufactured  in Brazil, includes dress and casual footwear  sold
at  price points ranging from $45 to $75 and is targeted to  boys
and  girls ages 5 to 16 who are making more of their own  fashion
choices  than  ever  before.   The  Company  believes  that   the
expansion into children's footwear is a natural extension of  its
footwear  business  and,  by utilizing  takedowns  of  successful
performers of existing men's and women's styles, greatly enhances
the likelihood of product performance.

   Unlisted.com

   Unlisted.com products are designed and targeted to the younger
trendier consumer market, the country's largest consumer base  of
fashion  merchandise.  The Unlisted.com brand  was  developed  to
expand  the Company's sales into a younger more moderately priced
business  and includes approximately 50 styles of women's  casual
and  dress  shoes  and approximately 70 styles  of  handbags  per
season.

   Unlisted.com footwear provides the junior consumer with a wide
selection  of footwear with contemporary styling and  quality  at
affordable  prices.  Unlisted.com women's footwear  includes  not
only  fashion  styles, but also evening styles, basic  pumps  and
loafers that generally retail at price points ranging from $30 to
$65.   In  the  first  quarter  of  1999,  the  Company  launched
Unlisted.com   men's  footwear  and  is  exploring   distribution
channels  and licensing agreements to further expand this  brand.
The  line includes casual and evening assortments with a  variety
of fashion styles to compliment the selection of approximately 50
styles  per season.  The shoes range at retail price points  from
$60 to $90.

   Unlisted.com  handbags  are designed for  the  younger  price-
conscious  trend-driven consumer and consist of  trendy  bags  in
vinyl,  straw  and  other  exciting  fabrications.   Unlisted.com
handbags  generally retail at price points ranging  from  $20  to
$50.

Business Segments

    The   Company  primarily  distributes  its  products  through
Wholesale  and  its  own  Consumer Direct distribution  channels.
During  the  periods  presented  below,  the  percentage  of  net
revenues contributed by the Company's business segments  were  as
follows:

                                                Year Ended
                                                December 31,
                                        1999       1998     1997
                                       ------     ------   ------
                     Wholesale           60%        66%      71%
                     Consumer Direct     35         30       26
                     Licensing            5          4        3
                                       ------     ------   ------
                     Total              100%       100%     100%
                                       ======     ======   ======



Wholesale Operations

   The  Company  strives to provide affordable fashion  footwear,
handbags and accessories with consistent marketing and management
support  to  its wholesale customers. The Company  provides  this
support  by  producing strong image driven advertising,  offering
creative  quality  products  and maintaining  adequate  inventory
levels  of  new  products  as well as products  included  in  the
Company's  open  stock program. The Company  employs  independent
wholesale agents as well as corporate account specialists to sell
its  products and to manage its relationships with its  wholesale
customers,  including  analyzing  and  monitoring  their  selling
information.

   The  Company's  products are distributed in  more  than  1,200
wholesale accounts for sale in more than 3,700 store locations in
the  United  States. The Company markets its branded products  to
major  department stores and chains, such as the department store
divisions   of  Dayton  Hudson  Corporation,  Dillard  Department
Stores,  Inc.,  Federated  Department Stores  (including  Macy's,
Bloomingdales,  and  Burdines), and upscale specialty  retailers,
including Saks Fifth Avenue and Nordstrom, Inc.  In addition, the
Company sells out-of-season branded products and overruns through
the  Company's  outlet  stores  and  to  off-price retailers. The
Company also sells its products, directly or through distributors,
to  wholesale customers in Canada, Hong Kong, Japan, Taiwan,  the
Philippines and Singapore.

  The Company markets its product lines and introduces new styles
at  separate  industry-wide footwear and handbag tradeshows  that
occur  several times throughout the year in New York,  Las  Vegas
and  at  various  regional shows. These  shows  also  afford  the
Company  the  opportunity to assess preliminary  demand  for  its
products.  After  each show, the Company's wholesale  agents  and
corporate  account  specialists visit  customers  to  review  the
Company's  product lines and to secure purchase commitments.  The
Company's  products  also are displayed at separate  handbag  and
footwear showrooms in New York.

  Private Label

   The  Company also designs, develops and sources private  label
footwear and handbags for selected retailers. These private label
customers  include  major  retailers that  do  not  purchase  the
Company's brands.  The Company's private label business  requires
minimal  overhead and capital because the Company does not  incur
any  costs  related  to  importing, shipping  or  warehousing  of
inventory, all of which are borne by the customer.

Consumer Direct Operations

   Retail Operations

   The  Company  continues  to  pursue several  opportunities  to
enhance and expand its retail operations.  At December 31,  1999,
the  Company  operated 41 specialty retail stores and  20  outlet
stores under the Kenneth Cole New York name.

   The  Company's retail stores are operated to develop  consumer
recognition of its brand names, to provide a showcase for Kenneth
Cole  branded products marketed by the Company and its  licensees
and  to  enhance the Company's overall profitability. The Company
believes  that these stores complement its wholesale business  by
building brand awareness. In addition, Kenneth Cole retail stores
enable  the Company to reach consumers who prefer the environment
of a specialty store. In addition to its Kenneth Cole stores, the
Company plans on testing its first Reaction stand-alone store  in
New  York City during the second half of 2000.  Approximately 20%
to  25%  of  the  Company's  retail store  products  are  sourced
exclusively  for such stores which differentiate the product  mix
of  its stores from that of its wholesale customers.  The Company
opened  three retail stores in 1999, and plans to open or  expand
five to seven new stores in 2000.

   At  December 31, 1999,  the Company operated 20 outlet stores.
The Company establishes its outlet stores to enable it to sell  a
portion of its excess wholesale, retail and catalog inventory  in
a manner which it believes does not have an adverse impact on its
wholesale  customers  and the Company's retail  operations.   The
Company  generally does not make a style available in its  outlet
stores  or to off-price retailers until wholesale customers  have
taken their first markdown on that style. The Company anticipates
that it will require additional outlet stores as higher levels of
sales are achieved and additional retail stores are opened.   The
Company  opened  four outlet stores and plans to open  or  expand
three or four stores in 2000.

   The  success  of  the Company's new and existing  stores  will
depend  on  various  factors,  including  general  economic   and
business  conditions affecting consumer spending, the  acceptance
by  consumers of the Company's retail concept, the ability of the
Company  to  successfully manage such expansion, hire  and  train
personnel,   the   availability  of  desirable   locations,   the
negotiation of acceptable lease terms for new locations  and  the
expansion  of  the  Company's management information  systems  to
support  the  growth  of  its  retail  operations.   The  Company
believes  that its retail stores, further enhance its image,  and
represent an opportunity for revenue and earnings growth.

       Catalog, Website and Customer Service

   The  Company produces consumer catalogs that feature a variety
of  Kenneth  Cole  New  York and Reaction  Kenneth  Cole  branded
products. Catalog order-taking and fulfillment of accessories and
apparel  is  performed  by  a  third  party  service  located  in
Virginia.   In 1999, the Company began performing fulfillment  of
footwear and handbags from its distribution center in New  Jersey
and plans to perform fulfillment of all products in 2000.

    The  Company  maintains  a  website  to  provide  information
regarding  the Company and its products, as well as to develop  a
profitable  e-commerce business.  In 1999, the Company relaunched
its   improved  e-commerce  site  Kennethcole.com,  and  launched
Unlisted.com,  a  marketing  site  without  e-commerce, targeting
younger  Generation  Y  (age 12 to 24)  consumers.   The  Company
plans  to  continue  to  invest  in  the  internet  and  emerging
technologies   and   believes  that   based   on   its   existing
merchandising, fulfillment and marketing capabilities, it is well
positioned to deliver an on-line commerce solution with nonpareil
customer  service.   The  Company also  maintains  two  toll-free
telephone  numbers  (1-800-KEN-COLE  and  1-800-UNLISTED)   which
provide customer service and answer product-related questions.

Licensing

   The  Company  views its licensing agreements as a  vehicle  to
better  service its customers by extending its product  offerings
to   meet   more   of  their  fashion  accessory  needs   without
compromising  on  price, value or style.  The  Company  considers
entering   into   licensing,  joint  venture   and   distribution
agreements  with  respect to certain products if such  agreements
provide  more  effective sourcing, marketing and distribution  of
such  products  than could be achieved internally.   The  Company
continues to pursue opportunities in new product categories which
are believed to be complementary to its existing product lines.

   Licensees  range  from small to medium size  manufacturers  to
companies that are among the industry leaders in their respective
product  categories.   The  Company  selects  licensees  that  it
believes   can  produce  and  service  quality  fashion  products
consistent with the Kenneth Cole New York, Reaction Kenneth  Cole
and  Unlisted.com  brand  images. The  Company  communicates  its
design  ideas  and  coordinates all marketing  efforts  with  its
licensees.  The Company generally grants licenses  for  three  to
five  years  with  renewal options, limits licensees  to  certain
territorial  rights,  and  retains the  right  to  terminate  the
license if certain specified sales levels are not attained.  Each
license  provides the Company with the right to  review,  inspect
and  approve all product designs and quality and approve  as  any
use of its trademarks in packaging, advertising and marketing.

  In 1999, the Company captured significant shelf space in better
department stores for its men's apparel collection as it  further
rolled  out tailored clothing, men's sportswear and dress shirts.
This was an important step in further defining Kenneth Cole as  a
premier  lifestyle brand as its distinctive image is consistently
developed  across  an  expanding number of products,  brands  and
markets.   Through its licensing agreement with  industry  expert
Liz  Claiborne Inc., the Company will be launching  Kenneth  Cole
women's  sportswear in Fall 2000.  This highly anticipated  debut
into  womens  fashion will be followed by the launch of  Reaction
Kenneth  Cole  in Spring 2001, followed by Unlisted.com  in  Fall
2001.   The  Company  believes the addition  of  womenswear  will
further define and differentiate its brands, enabling the Company
to better meet its customer's needs.

The  following  table summarizes the Company's  licensed  product
categories:

                                   Kenneth Cole   Reaction
Product Category                     New York   Kenneth Cole  Unlisted.com

Men's Tailored Clothing                 X
Men's Sportswear                        X            X
Men's Neckwear                          X            X
Men's Underwear, Robes, Loungewear      X            X
Men's Dress Shirts                      X            X
Men's Hosiery                           X            X
Men's Leather & Fabric Outerwear        X            X
Men's Small Leather Goods               X            X            X
Men's Belts                             X            X            X
Women's Sportswear                      X            X            X
Women's Small Leather Goods             X            X            X
Women's Leather & Fabric Outerwear      X            X
Men's/Women's Scarves & Wraps           X            X
Men's/Women's Hats & Gloves             X            X
Men's/Women's Jewelry                   X
Men's/Women's Watches                   X            X
Men's/Women's Optical Frames            X            X
Men's/Women's Luggage/Briefcases        X            X            X
Men's/Women's Sunglasses                X            X            X
Kid's Leather Outerwear                              X            X
Kid's Belts                                          X            X
Kid's Legwear                                        X            X
Kid's Sunglasses                                     X            X

   All  of the Company's licensees are required to contribute  to
the  Company a percentage of their net sales of licensed product,
subject  to  minimum amounts, for the ongoing  marketing  of  the
Kenneth Cole brands.

International

    The   Company  sells  its  products,  directly   or   through
distributors, to wholesale customers in Canada, Hong Kong, Japan,
Taiwan,  the  Philippines and Singapore.  The  Company  plans  to
continue  to  expand  its international licensing  and  wholesale
distribution  programs  as  a means of  developing  global  brand
recognition  and  creating additional wholesale markets  for  its
products.  The  Company also operates one  retail  store  in  the
Netherlands.

   The  Company has a licensing agreement with Dickson  Concepts,
Ltd.  ("Dickson")  to retail Kenneth Cole New York  and  Reaction
Kenneth  Cole branded products throughout Hong Kong,  Taiwan  and
Singapore  through  free  standing Kenneth  Cole  retail  stores,
leased departments and shop-in-shops.  Dickson currently operates
nine free standing Kenneth Cole stores throughout the region  and
for  the first time is placing men's sportswear in its Hong  Kong
and Singapore locations for the Spring 2000 season.  During 1998,
the  Company  entered  into an agreement to  sell  the  Company's
branded  products  throughout  the  Philippines  through   leased
departments  and  shop-in-shops.  In 1999 the first free standing
retail  store  was  opened in Manila.  The international  stores'
format  and product mix are consistent with that of the Company's
Kenneth Cole New York domestic retail stores. In connection  with
the  Company's  business strategy of enhancing and expanding  its
international  operations,  the  Company  is  considering   other
licensing and distribution opportunities.

   The  Company, through license agreements, sells  most  product
classifications in Canada.  In 1999, the Company entered into  an
agreement   to  distribute  Reaction  Kenneth  Cole   sportswear,
tailored clothing and dress shirts for launch in Fall 2000.

Design

  Kenneth D. Cole, Chief Executive Officer and President, founded
the  Company  and its success to date is largely attributable  to
his  design talent, creativity and marketing abilities.  Mr. Cole
selects designers to join a design team to work with him  in  the
creation and development of new product styles.  Members of  each
design  team work together with Mr. Cole to create a design  that
they  believe  fits  the  Company's image,  reflects  current  or
approaching trends and can be manufactured cost-effectively.

   The  Company's design teams constantly monitor fashion  trends
and  search  for new inspirations.  Members of the various  teams
travel extensively to assess fashion trends in Europe, the United
States  and  Asia  and  work closely with  retailers  to  monitor
consumer preferences. The process of designing and introducing  a
new  product takes approximately three to four months.  Once  the
initial  design  is complete, a prototype is developed,  reviewed
and refined prior to commencement of production.

   In order to reduce the impact of changes in fashion trends  on
the Company's product sales and to increase the profitability  of
the Company's products, the Company continuously seeks to develop
new core basic product styles that remain fashionable from season
to  season  without  significant changes in  design  or  styling.
Since  these  core  basic  products  are  seasonless,  retailers'
inventories  of  core  basic  products  tend  to  be   maintained
throughout the year and reordered as necessary, primarily through
electronic data interchange.

Sourcing

    The  Company  does  not  own  or  operate  any  manufacturing
facilities  and  sources its branded and private  label  products
directly  or indirectly through independently owned manufacturers
in  Italy,  Spain,  Brazil, India, China and Korea.  The  Company
maintains  offices in Florence, Italy and Hong Kong and generally
has  long-standing relationships with several independent  buying
agents to monitor the production, quality and timely distribution
of  the  Company's products from its manufacturers.  The  Company
sources  each  of  its  product lines  separately  based  on  the
individual  design,  styling and quality specifications  of  such
products.

    The   Company   attempts  to  limit  the   concentration   of
manufacturing  with any one manufacturer. However,  approximately
58% and 46% of the dollar value of total handbag purchases by the
Company  were produced by one manufacturer through many different
factories  in China in 1999 and 1998, respectively.  In addition,
43%  and  58%  of men's footwear was produced by one manufacturer
utilizing several different factories in Italy in 1999 and  1998,
respectively.    These  manufacturers,  however,  subcontract   a
significant  portion of such purchases to ensure  the  consistent
and  timely  delivery of quality products.  The  Company  is  the
largest customer of these manufacturers and has established long-
standing relationships with them.  While the Company believes  it
has  alternative  manufacturing sources  available  to  meet  its
current  and  future production requirements,  there  can  be  no
assurance  that, in the event the Company is required  to  change
from   current  manufacturers,  alternative  suppliers  will   be
available   on   terms  comparable  to  the  Company's   existing
arrangements.

   In advance of the Fall and Spring selling seasons, the Company
works  with  its manufacturers to develop product prototypes  for
industry trade shows. During this process, the Company works with
the manufacturers to determine production costs, materials, break-
even  quantities and component requirements for new styles. Based
on  indications  from  the  trade shows  and  initial  purchasing
commitments  from  wholesalers,  the  Company  places  production
orders  with  the  manufacturers. As a  result  of  the  need  to
maintain   in-stock  inventory  positions,  the  Company   places
manufacturing orders for open stock and certain fashion  products
prior  to  receiving firm commitments. Once  an  order  has  been
placed,  the  manufacturing and delivery time ranges  from  three
weeks  to  four  months depending on whether it is  currently  in
production  or a new product. Throughout the production  process,
the  Company monitors product quality through inspections at both
the  factories and upon receipt at its warehouses. To reduce  the
risk of overstocking, the Company monitors sell-through data on a
weekly  basis  and seeks input on product demand  from  wholesale
customers to adjust production when needed.

Advertising and Marketing

   The  Company believes that advertising to promote and  enhance
the Kenneth Cole New York and Reaction Kenneth Cole brands is  an
intricate  part  of  its long-term growth strategy.  The  Company
believes  that its advertising campaigns, which have  brought  it
national recognition for their timely focus on current events and
social  issues,  have resulted in increased  sales  and  consumer
awareness  of  its  branded products. The  Company's  advertising
appears  in  magazines such as Vogue, Vanity Fair,  Details,  GQ,
Glamour  and Marie Claire, newspapers, and outdoor and electronic
advertising media. All of the Company's licensees are required to
contribute  to  the Company a percentage of their  net  sales  of
licensed  product, subject to minimums, for the  advertising  and
promotion  of  the Kenneth Cole trademark. In addition,  personal
appearances  by  Kenneth D. Cole have been  utilized  to  further
enhance the Company's image.

   The Company utilizes in-house advertising and public relations
staff  for  all media placement, which includes approval  of  all
advertising  campaigns from its licensees.  By retaining  control
over  its advertising and marketing programs, the Company is able
to   maintain  the  integrity  of  its  brands  while   realizing
substantial cost savings when compared to outsourcing.

   In  order  to  continue to strengthen brand awareness  of  its
products and increase sales, the Company is actively involved  in
the  development,  marketing and merchandising programs  for  its
customers.   As  part  of  this  effort,  the  Company   utilizes
cooperative  advertising programs, sales promotions and  produces
consumer  catalogs which feature a variety of  Kenneth  Cole  New
York  and Reaction Kenneth Cole branded products marketed by  the
Company  and its licensees. In addition, the Company  has,  on  a
limited  basis,  worked  with customers  to  develop  distinctive
catalogs that market the Company's products and to develop  point
of sale displays. Because all this work is done internally, there
is  a  singular focus, a strong synergy and a consistency in  all
communications.

   An  important  developing aspect of  the  Company's  marketing
efforts  is  the  creation  of  shop-in-shops,  where  an  entire
collection  of the Company's branded products is featured,  along
with   focus   areas,  where  specific  product  categories   are
highlighted.   These  shop-in-shops and  focus  areas  create  an
environment  that  is  consistent with the  Company's  image  and
enables the retailer to display and stock a greater volume of the
Company's products per square foot of retail space.  In addition,
these   shop-in-shops  and  focus  areas  encourage   longer-term
commitment  by  retailers to the Company's products  and  enhance
consumer brand awareness.

Distribution

    To   facilitate  distribution,  the  Company's  products  are
inspected,  bar  coded, packed and shipped from manufacturers  by
ocean  or  air  to  either the Company's distribution  facilities
located in Secaucus, New Jersey or a public warehouse located  in
California.  The  Company utilizes fully  integrated  information
systems  and  bar  code  technology to  facilitate  the  receipt,
processing  and distribution of product through both distribution
facilities.   The  products  are then shipped  to  the  Company's
wholesale  customers  either in bulk  or  under  its  open  stock
program.  The  Company's open stock program allows its  wholesale
customers  to reorder, typically via electronic data  interchange
("EDI"),  core  basic styles in a range of colors and  sizes  for
immediate  shipment.  While the open stock  program  requires  an
increased  investment in inventories, the Company  believes  this
program  is  an important service for its wholesale customers  by
allowing  them to manage inventory levels more effectively.   The
Company believes that affording customers improved flexibility in
ordering  specific  SKUs  in smaller quantities  will  ultimately
reduce the incidence of markdowns and allowances.

Management Information Systems

  The Company believes that sophisticated information systems are
essential  to  the Company's ability to maintain its  competitive
position   and   to  support  continued  growth.  The   Company's
management  information systems were designed to  provide,  among
other   things,   comprehensive  order  processing,   production,
accounting   and   management  information  for   the   sourcing,
importing,  distribution and marketing aspects of  the  Company's
business.   During  1999  the  Company  replaced  its   wholesale
distribution  and  financial systems with  newer  technologically
advanced  systems that offer greater functionality  and  enhanced
reporting.   These new systems are Year 2000 compliant  and  were
implemented prior to any impact on the current operating  system.
The Company also utilizes an EDI system which provides a computer
link between the Company and many of its wholesale customers that
enables  the Company to receive on-line orders and to  accumulate
sales information on its products. The Company's EDI system  also
improves  the  efficiency of responding  to  customer  needs  and
allows  both  the customer and the Company to monitor  purchases,
shipments  and invoicing. In its retail stores, the Company  uses
point-of-sale   registers  to  capture  sales  data   and   track
inventories.

   The Company regularly evaluates the adequacy of its management
information  systems  and upgrades such systems  to  support  its
growth.   However, the Company's failure to continue  to  upgrade
its management information systems necessary to support growth or
expansion, which could arise either with its internal systems  or
systems  of  its  third parties, could have  a  material  adverse
effect  on  the Company's financial condition and its results  of
operations (see Item 7, "Management's Discussion and Analysis  of
Financial Condition and Results of Operations").

Trademarks

   The  Company,  through its wholly-owned subsidiary,  K.C.P.L.,
Inc.,  owns  federal  registrations for its principal  trademarks
Kenneth  Cole,  Kenneth  Cole New York,  Kenneth  Cole  Reaction,
Reaction, Kenneth Cole Collection and Unlisted as well as several
other  ancillary and derivative trademarks.  Each of the  federal
registrations is currently in full force and effect  and  is  not
the  subject  of any legal proceedings. In addition, the  Company
has  several  pending federal applications in the  United  States
Patent  and  Trademark office for trademarks and  service  marks,
including   Reaction  Kenneth  Cole,  Unlisted.com  and   several
ancillary trademarks.  Moreover, the Company continues to  expand
its current international registrations in numerous countries  in
Asia,  South  America, the Middle East and Europe.   The  Company
regards  its trademarks and other proprietary rights as  valuable
assets  in  the  marketing and distribution of its products,  and
fully  intends  to maintain, renew and protect the registrations,
as   well   as   vigorously   defend   all   trademarks   against
infringements.

Competition

   Competition in the footwear and handbags industries is intense
and is subject to rapidly changing consumer demands.  The Company
competes  with  numerous designers, brands and  manufacturers  of
footwear, handbags, apparel and accessories, some of which may be
larger, have achieved greater recognition for their brand  names,
have  captured  greater  market share and/or  have  substantially
greater  financial, distribution, marketing and  other  resources
than  the  Company.  The Company also competes  for  the  limited
shelf-space  available for the display of  its  products  to  the
consumer and the Company's licensed apparel and accessories  also
compete  with  a substantial number of designer and  non-designer
brands.    Moreover,   the  general  availability   of   contract
manufacturing capacity allows access by new market entrants.  The
Company  believes  the  success of its business  depends  on  its
ability to stimulate and respond to changing consumer preferences
by  producing  innovative  and attractive  products,  brands  and
marketing, while remaining competitive in quality and price.

Foreign Operations

   The  Company's business is subject to risks of doing  business
abroad,  such  as fluctuations in currency exchange rates,  local
market  conditions, labor unrest, political instability  and  the
imposition   of  additional  regulations  relating  to   imports,
including  quotas, duties or taxes and other charges on  imports.
While these factors have not had a material adverse impact on the
Company's operations to date, there can be no assurance that they
will  not  have  a  material  adverse  affect  on  the  Company's
operations in the future.

   In order to reduce the risk of exchange rate fluctuations, the
Company  routinely  enters  into forward  exchange  contracts  to
protect  the  future purchase price of inventory  denominated  in
foreign currencies. These forward exchange contracts are used  to
reduce  the  Company's exposure to changes  in  foreign  exchange
rates  and are not held for the purpose of trading or speculation
(see  Item  7, "Management's Discussion and Analysis of Financial
Condition and Results of Operations").

Import Restrictions

   Although the majority of the goods sourced by the Company  are
not currently subject to quotas, countries in which the Company's
products are manufactured may, from time to time, impose  new  or
adjust  prevailing  quotas  or  other  restrictions  on  exported
products.  In addition, the United States may impose new  duties,
tariffs and other restrictions on imported products, any of which
could  have a material adverse affect on the Company's operations
and  its  ability to import its products at the Company's current
or  increased quantity levels. In accordance with the  Harmonized
Tariff  Schedule, a fixed duty structure in effect for the United
States,  the  Company pays import duties on its products  ranging
from  approximately  6%  to  37.5%, depending  on  the  principal
component  of the product. Other restrictions on the  importation
of footwear and other products are periodically considered by the
United  States  government and no assurance  can  be  given  that
tariffs  or  duties  on the Company's goods may  not  be  raised,
resulting  in higher costs to the Company, or that import  quotas
restricting  such  goods  may  not  be  imposed  or   made   more
restrictive.

  A significant portion of the Company's products is manufactured
in  and  imported from China.  The Company's operations  and  its
ability  to  import products from China at current tariff  levels
could  be materially and adversely affected if the ''most favored
nation''  status granted to China by the United States government
for  trade and tariff purposes is terminated. As a result of such
status,  products  imported by the Company from  China  currently
receive  the  lower tariff rates made available to  most  of  the
United  States'  major trading partners.  While  China  has  been
granted  "most favored nation" status in every year  since  1979,
there can be no assurance that the United States will continue to
grant  China "most favored nation" status in the future.  In  the
event  that  such status is not renewed in future  years,  tariff
levels  on imports from China could rise significantly and  could
have  a  material  adverse  effect on the  Company's  results  of
operations. However, the Company believes that it would  be  able
to shift production of certain goods to other countries on a cost
effective  basis and to continue to produce in China those  goods
subject to lower tariff rates.

Seasonality

   The  Company's products are marketed primarily  for  Fall  and
Spring seasons, with slightly higher volume of wholesale products
sold  during the first and third quarters.  The Company's  retail
business   follows   the  general  seasonal   trends   that   are
characteristic within the retail industry: sales and earnings are
highest  in the fourth quarter and weakest in the first  quarter.
Because  the  timing of wholesale shipments of products  for  any
season  may  vary  from year to year, the  results  for  any  one
quarter may not be indicative of the results for the full year.

Customers

   The  Company's department store customers include major United
States  retailers,  certain of which are under common  ownership.
In  1999  and  1998, the Company had no customer or  group  under
common  ownership  account  for  more  than  10%  of  sales.  The
Company's  ten largest customers represented 40.1% and  44.5%  of
the Company's net sales for the years ended December 31, 1999 and
1998,  respectively.  While the Company believes that  purchasing
decisions have generally been made independently by each division
within  a  department  store  group,  there  is  a  trend   among
department  store groups toward centralized purchasing  decisions
of their divisions.

Backlog

   The  Company had unfilled wholesale customer orders  of  $69.8
million  and $50.3 million, at March 27, 2000 and March 26,  1999
respectively.  The  Company's backlog at  a  particular  time  is
affected by a number of factors, including seasonality, timing of
market weeks, and wholesale customer purchases of its core  basic
products through the Company's open stock program. Accordingly, a
comparison of backlog from period to period may not be indicative
of eventual shipments.

Employees

   At  December  31,  1999,  the Company had  approximately  1200
employees,  140 of whom are covered under a collective bargaining
agreement  with  a  local affiliate of the International  Leather
Goods,  Plastics, Handbags and Novelty Workers' Union,  Local  1,
Division  of  Local  342-50 United Food  and  Commercial  Workers
Union. The Company considers its relationships with its employees
to  be satisfactory.  The collective bargaining agreement expires
in  April  2000.  While the Company believes it will be  able  to
renew the agreement with similar terms and conditions, there  can
be  no assurance a new agreement will be reached and that failure
to  reach  a  new  collective bargaining  agreement  can  have  a
material effect on the Company.

Directors and Executive Officers

Name               Age  Present Position

Kenneth D. Cole    46   President and  Chief  Executive Officer
Paul Blum          40   Executive Vice President and Chief Operating Officer
Stanley A. Mayer   52   Executive Vice President and  Chief Financial Officer
Harry Kubetz       46   Senior Vice President
Susan Hudson       40   Senior Vice President
Robert Grayson     55   Director
Denis F. Kelly     50   Director
Jeffrey G. Lynn    50   Director
Philip B. Miller   62   Director

  Kenneth D. Cole has served as the Company's President and Chief
Executive  Officer since its inception in 1982. Mr.  Cole  was  a
founder,  and  from 1976 through 1982, a senior executive  of  El
Greco,  Inc.,  a  shoe  manufacturing and  design  company  which
manufactured Candie's women's shoes. Mr. Cole is on the Boards of
Directors   of   the  American  Foundation  for   AIDS   Research
(''AmFAR'')  and  H.E.L.P.,  a  New  York  agency  that  provides
temporary  housing for the homeless. In addition, Mr. Cole  is  a
Director  and  President of each of the wholly-owned subsidiaries
of the Company.

   Paul Blum has served as Chief Operating Officer since February
1998.  Prior he served as Executive Vice President of the Company
since  May  1996  and as Senior Vice President from  August  1992
until May 1996. Mr. Blum joined the Company in 1990.   From  1982
until 1990, Mr. Blum served as Vice President and was a principal
shareholder of The Blum Co., a fashion accessory firm, the assets
of which were purchased in 1990 by the Company.

   Stanley A. Mayer has served as Executive Vice President, Chief
Financial  Officer, Treasurer and Secretary of the Company  since
March  1988. From 1986 until joining the Company, Mr. Mayer  held
the  position  of  Vice President-Finance and  Administration  of
Swatch Watch USA, Inc. Mr. Mayer was the Controller of the  Ralph
Lauren  and  Karl  Lagerfeld womenswear  divisions  of  Bidermann
Industries,  USA,  Inc. from 1979 until 1986.  In  addition,  Mr.
Mayer  is the Vice President and Secretary of each of the wholly-
owned subsidiaries of the Company.

   Harry Kubetz has served as Senior Vice President of Operations
since joining the Company in April 1996. Mr. Kubetz was President
of  "No  Fear"  Footwear, Inc. from 1994 until 1996.   From  1992
until  1994  Mr.  Kubetz  was Executive Vice  President  of  Asco
General Supplies, a wholly owned subsidiary of Pentland, PLC.

    Susan  Q.  Hudson  has  served as  Senior  Vice  President  -
Wholesale  since  February  1998.  Prior,  Ms. Hudson  served  as
Divisional  President - Men's  Footwear  since 1996 and  as  Vice
President  in  charge  of men's footwear since  1990.   Prior  to
joining the Company, Ms. Hudson was at LA Gear, where she  served
as Regional Sales Manager.

   Robert  C.  Grayson  is  President  of  Robert  C.  Grayson  &
Associates,   Inc.   and   Vice  Chairman  of   Berglass-Grayson,
consulting  firms.   From  1992  to  1996,  Mr.  Grayson   served
initially  as  an outside consultant to Tommy Hilfiger  Corp.,  a
wholesaler  and  retailer of men's sportswear and  boyswear,  and
later accepted titles of Chairman of Tommy Hilfiger Retail,  Inc.
and Vice Chairman of Tommy Hilfiger Corp.  From 1970 to 1992, Mr.
Grayson  served in various capacities for Limited Inc., including
President  and  CEO  of Lerner New York from 1985  to  1992,  and
President and CEO of Limited Stores from 1983 to 1985.

   Denis  F.  Kelly is a Managing Director and the  head  of  the
Mergers  and  Acquisitions  Department at  Prudential  Securities
Incorporated  since July 1993.  From 1991 until 1993,  Mr.  Kelly
was President of Denbrook Capital Corp., a merchant banking firm.
Mr. Kelly was at Merrill Lynch from 1980 to 1991, where he served
as  Managing Director, Mergers & Acquisitions from 1984 to  1986,
and  then as a Managing Director, Merchant Banking, from 1986  to
1991.  Mr. Kelly is a director of MSC Industrial Direct, Inc.

   Jeffrey  G.  Lynn has been the Chairman, President  and  Chief
Executive  Officer  of  Dunham's Athleisure  Corp.,  a  specialty
retailer  of  sportswear, since 1987.  Mr. Lynn  joined  Dunham's
Athleisure  Corp.  in  1985 and served as president  until  1987.
Prior  to  1985,  he served as Executive Vice  President  of  the
Musicland    Group,   a   specialty   retailer   of   audio/video
entertainment  software.   Mr. Lynn  is  a  director  of  English
Gardens and Fairlane Florists, Inc.

   Philip B. Miller was appointed to serve on the Company's Board
of Directors on  March 23, 2000.  Mr. Miller is  Chairman of Saks
Fifth  Avenue, an  upscale  specialty  retailer,  and  serves  as
Co-Chairman of Saks Direct,  a subsidiary  comprising  e-commerce
and direct mail businesses.  Mr. Miller  served  as  Chairman and
Chief Executive Officer at Saks Fifth Avenue from 1993 to January
2000.  Mr. Miller  was  formerly  Chairman  and  Chief  Executive
Officer at Marshall Fields,  joining that  company  in  1983 from
Neiman Marcus,  where  he  had  been  President  since 1977.  Mr.
Miller serves as Senior Vice Chairman of  the  Board of Directors
of The Lighthouse and also serves on the  Board  of  Directors of
Saks Incorporated, the  Metropolitan  Opera Guild of New York and
the New York Botanical Gardens.

Item 2.   Properties

   The  Company's executive offices and showrooms are located  at
152  West  57th  Street, New York, N.Y., and occupy approximately
30,000  square feet under leases that expire between  April  2000
and December 31, 2006.

    The   Company's   administrative  offices  and   distribution
facilities are located in Secaucus, New Jersey under  leases that
expire in June, 2002.  The main facility comprises 244,000 square
feet,  of  which, approximately 30,000 square feet  is  used  for
administrative  offices. In March 2000,  the  Company  leased  an
additional  77,000 square feet to expand its current distribution
capacity.   The  lease  expires  simultaneously  with  the  other
distribution  facility  located  in  Secaucus,  New  Jersey.   In
addition  to these two leases, the Company also leases  a  23,500
square  foot facility in Secaucus used for outlet store space  as
well  as  an  additional distribution warehousing  facility.  The
Company  also utilizes a public warehouse on the west  coast  and
has  technical and administrative offices in Florence, Italy  and
Hong  Kong. The Company does not own or operate any manufacturing
facilities.

   The  Company leases space for all of its 41 full price  retail
stores  (aggregating approximately 110,000 square  feet)  and  20
outlet  stores  (aggregating approximately 63,000  square  feet).
Generally, the leases provide for an initial term of five to  ten
years, with renewal options permitting the Company to extend  the
term thereafter.

   In  December  1998, the Company entered into a 15-year  lease,
which  over  a  period  of two to five years,  will  provide  the
Company  with approximately 126,000 square feet of office  space,
enabling  it to relocate its corporate headquarters to  a  larger
location  in  New  York  City and consolidate  various  satellite
office  space. The Company is currently renovating   portions  of
the facility for the initial phase of relocation expected in mid-
2000.

Item 3.   Legal Proceedings

   The  Company is, from time to time, a party to litigation that
arises  in  the  normal course of its business  operations.   The
Company  is  not  presently a party to any such  litigation  that
would  have  a  material  adverse  effect  on  its  business   or
operations.

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

  None.

<PAGE>
                             PART II

Item  5.    Market  for  Registrant's Common Equity  and  Related
Shareholder Matters

   The  Company's  Class  A Common Stock  is  listed  and  traded
(trading symbol KCP) on the New York Stock Exchange ("NYSE").  On
March  27,  2000  the closing sale price for the Class  A  Common
Stock was $60.25. The following table sets forth the high and low
sale  prices  for  the Class A Common Stock  for  each  quarterly
period  for  1998  and  1999 (adjusted  to  give  effect  to  the
Company's three-for-two Common Stock split on March 6, 2000),  as
reported on the NYSE Composite Tape:


     1998:                         High      Low

First Quarter                      14.92     10.29
Second Quarter                     17.83     12.79
Third Quarter                      17.63      8.63
Fourth Quarter                     14.25      9.25


     1999:                         High      Low

First Quarter                      17.58     12.21
Second Quarter                     22.67     17.33
Third Quarter                      25.29     18.58
Fourth Quarter                     33.00     23.71

   The  number  of shareholders of record of the Class  A  Common
Stock on March 27, 2000 was 50.

   There are three holders of record of Class B Common Stock  and
5,785,390  shares  of  Class  B  Common  Stock  are  issued   and
outstanding.  As a result of an insufficient number of additional
authorized shares of Class B Common Stock required to  be  issued
in  order to effectuate the Company's three-for-two stock  split,
on  March  6, 2000 the holders of record of Class B Common  Stock
were issued 28,927 shares of Series A Convertible Preferred stock
in  lieu  of  shares of Class B Common Stock.   Upon  shareholder
approval, the shares of Series A Convertible Preferred Stock will
automatically convert to 2,892,700 shares of Class B Common stock
that  should  have  been issued pursuant to the  Company's  stock
split.   There  is no established public trading market  for  the
Company's Series A Convertible Preferred Stock or Class B  Common
Stock.

Dividend Policy

   The  Company  intends to retain its earnings  to  finance  the
development,  expansion  and growth  of  its  existing  business.
Accordingly,  the  Company  does  not  anticipate   paying   cash
dividends on its Class A Common Stock in the foreseeable  future.
The payment of any future dividends will be at the discretion  of
the  Company's  Board of Directors and will  depend  upon,  among
other  things, future earnings, operations, capital requirements,
the  financial  condition  of the Company  and  general  business
conditions.
<PAGE>
Item 6.   Selected Financial Data

  The following selected financial data has been derived from the
consolidated  financial statements of the Company and  should  be
read  in  conjunction with the consolidated financial  statements
and notes thereto that appear elsewhere in this Annual Report and
in  "Management's Discussion and Analysis of Financial  Condition
and Results of Operations" set forth in Item 7.  All earnings per
share  and shares outstanding amounts have been adjusted to  give
effect to the Company's three-for-two Common Stock split on March
6, 2000.
<TABLE>
<CAPTION>
                                       Year Ended December 31,
                               1999      1998       1997       1996     1995
                                 (dollars in thousands, except share data)
<S>                        <C>        <C>        <C>        <C>       <C>
Income Statement Data:
Net sales                   $295,353   $219,781   $185,278   $148,258  $113,828
Licensing revenue             14,955      8,357      6,028      3,575     1,855
Net revenue                  310,308    228,138    191,306    151,833   115,683
Cost of goods sold           168,856    129,403    112,183     86,919    67,382
Gross profit                 141,452     98,735     79,123     64,914    48,301
Selling and general
 administrative expenses(1)  100,836     72,145     58,330     44,354    31,957

Operating income              40,616     26,590     20,793     20,560    16,344
Interest income(expenese),net  1,280        404       (202)       (22)       30
Income before provision for
 income taxes                 41,896     26,994     20,591     20,538    16,374
Provision for income taxes    16,968     10,663      8,189      8,251     6,550
Net income                    24,928     16,331     12,402     12,287     9,824
Earnings per share:
 Basic                         $1.24       $.82       $.63       $.62      $.50
 Diluted                       $1.18       $.80       $.61       $.60      $.48
Weighted average shares outstanding:
 Basic                    20,102,000 19,833,000 19,743,000 19,664,000 19,532,000
 Diluted                  21,059,000 20,456,000 20,408,000 20,367,000 20,274,000
</TABLE>

<TABLE>
<CAPTION>
                                  At December 31,
                             1999     1998     1997     1996     1995
<S>                       <C>       <C>      <C>      <C>      <C>
Balance Sheet Data:
Working capital            $106,057  $56,644  $46,949  $37,023  $27,309
Total assets                176,859   96,680   77,528   65,255   43,307
Total debt,including
 current maturities             758      927        0      489      102
Total shareholders' equity  125,331   73,689   59,740   46,599   33,489
</TABLE>

   (1)  Includes shipping and warehousing expenses.
<PAGE>
   Item 7.   Management's Discussion and Analysis of Financial
               Condition and Results of Operations

   The  following  discussion  and analysis  should  be  read  in
conjunction  with the consolidated financial statements  and  the
notes thereto that appear elsewhere in this Annual Report.

Results of Operations

   The  following table sets forth certain operating data of  the
Company as a percentage of net revenues for the periods indicated
below:

<TABLE>
<CAPTION>
                                              Year Ended December 31,
                                                 1999   1998   1997
<S>                                             <C>    <C>    <C>
Net sales                                        95.2%  96.3%  96.8%
Licensing revenue                                 4.8    3.7    3.2
                                                --------------------
Net revenues                                    100.0  100.0  100.0
Cost of goods sold                               54.4   56.7   58.6
                                                --------------------
Gross profit                                     45.6   43.3   41.4
Selling, general and administrative expenses     32.5   31.6   30.5
Operating income                                 13.1   11.7   10.9
Income before provision for income taxes         13.5   11.9   10.8
Provision for income taxes                        5.5    4.7    4.3
                                                --------------------
Net income                                        8.0%   7.2%   6.5%
                                                ====================
</TABLE>

Year  Ended  December  31,1999 Compared to  Year  Ended  December
  31,1998
   Net  revenues increased to $310.3 million in 1999 compared  to
$228.1  million in 1998, an increase of 36.0%.  This increase  is
due  to  increases  in each of the Company's  business  segments:
wholesale, consumer direct and licensing.

   Wholesale  net  sales (including sales to its consumer  direct
business  segment)  increased $39.0 million or  22.9%  to  $209.1
million  in  1999 from $170.1 million in 1998.  This increase  is
primarily  attributable to an increase  in  sales  of  men's  and
ladies  branded  footwear.   The  overall  increase  is  due   to
increased  sales to new and existing customers due  to  increased
brand  awareness and continued growing consumer demand of Kenneth
Cole New York as a premier lifestyle brand.  The Company believes
its  advertising campaigns, marketing efforts, website,  catalogs
and  growing retail presence, combined with the marketing efforts
of   its  licensees,  continue  to  be  significant  factors   in
increasing  consumer demand and the strengthening  of  its  three
distinct brands, Kenneth Cole New York, Reaction Kenneth Cole and
Unlisted.com across all product classifications.

   Net  sales in the Company's Consumer Direct segment  increased
$41.4  million  or  60.6% to $109.8 million in  1999  from  $68.4
million  in 1998.  The increase in the number of stores, as  well
as  a  comparable  stores  sales increase  of  approximately  20%
contributed to the increase in net sales.  Of the total increase,
$12.4  million  was  attributable to the comparable  store  sales
increase,  and $29.0 million was attributable to that portion  of
1999  sales of stores not open for all of 1998 and new stores  in
1999.   The  Company believes that the retail stores  convey  the
Company's image and seamlessly showcase both Company and licensee
products, and that this comprehensive presentation reinforces the
lifestyle brand, thus increasing consumer demand, not only in the
retail stores but also across all channels of distribution.

  Licensing revenue increased 79.0% to $15.0 million in 1999 from
$8.4 million in 1998.  The increase reflects incremental revenues
from   sales  from  existing  licensees.   The  most  significant
increases,  however,  were  due  to  the  roll  out  of  recently
introduced men's apparel product classifications including  dress
shirts,  sportswear and tailored clothing.  The Company  believes
its  recent  entry  into men's apparel and  the  upcoming  highly
anticipated  debut into women's sportswear comes at an  opportune
time   as  consumers  look  toward  brands  they  know  and  feel
comfortable  with.  The Company believes the synergies  from  its
efforts   to  reinforce  its  brand  identities  through  greater
marketing efforts, by itself and its licensees across all product
categories, will continue to propel licensee sales.

  Gross profit as a percentage of net revenues increased to 45.6%
in  1999  from 43.3% in 1998. This increase is due to an increase
in  the  proportion  of  revenue from the  retail  and  licensing
divisions,  each  of  which  produces  higher  margins  than  the
Company's consolidated gross profit percentage.  Sales  from  the
Consumer Direct segment were 35.4% of consolidated net revenue in
1999  compared with 30.0% in 1998.  Licensing revenue, which  has
no  associated  cost of goods sold, increased as a percentage  of
net  revenues  to 4.8% in 1999 from 3.7% in 1998.  The  Company's
wholesale  gross  profit increased across  all  brands  in  men's
footwear, handbags and ladies footwear which also experienced  an
improvement in its sell through at retail.

  Selling,   general   and  administrative  expenses,   including
shipping  and warehousing, increased 39.8% to $100.8 million  (or
32.5%  of  net revenues) in 1999 from $72.1 million (or 31.6%  of
net  revenues) in 1998.  The increase was primarily  attributable
to investment in organizational infrastructure to support growth,
marketing   and  public  relations  expenditures  to  build   the
Company's  brands, hiring of personnel and the expansion  of  the
Company's Consumer Direct operations.  Included in SG&A  expenses
in  1999  was  approximately $3.0 million, or  1%  of  sales,  in
internet and year 2000 related costs.  The increase in SG&A as  a
percentage  of  net  revenue is due to  the  increased  level  of
spending on the internet and information systems and expansion of
the Company's retail and outlet stores, which operate at a higher
cost structure than its Wholesale operations.

  Interest  income increased to $1.3 million in  1999  from  $0.4
million  last  year.   The increase is primarily  due  to  higher
average cash levels due to improved cash flows and the receipt of
$29.0  million  in proceeds from selling stock to  Liz  Claiborne
Inc. as part of the womenswear licensing agreement.

   As a result of the foregoing, operating income increased 52.7%
in  1999  to  $40.6  million (13.1% of net  revenue)  from  $26.6
million (11.7% of net revenue) in 1998.

Year  Ended  December  31,1998 Compared to  Year  Ended  December
  31,1997
   Consolidated net revenues were $228.1 million in 1998 compared
to   $191.3  million  in  1997,  an  increase  of  19.3%.    This
improvement is principally due to volume increases in each of the
Company's  business  segments:  wholesale,  consumer  direct  and
licensing.

   Wholesale  net  sales (including sales to its consumer  direct
business  segment)  increased $20.1 million or  13.4%  to  $170.1
million  in  1998 from $150.0 million in 1997.  This increase  is
primarily attributable to an increase in sales of men's footwear,
an  increase  in handbag sales, an increase in sales  of  private
label products, and sales of children's footwear, which was a new
product  classification introduced at the end of 1997,  partially
offset  by  a reduction in sales of women's footwear  due  to  an
extremely  challenging women's footwear retail environment.   The
overall  increase is due to increased sales to new  and  existing
customers due to increased brand awareness and continued  growing
consumer  acceptance  of  Kenneth Cole  New  York  as  a  premier
lifestyle brand.  The Company believes its advertising campaigns,
marketing efforts, website, catalogs and growing retail presence,
combined with the marketing efforts of its licensees, continue to
be  significant  factors in increasing consumer  demand  and  the
strengthening  of  its three distinct brands,  Kenneth  Cole  New
York,  Kenneth  Cole  Reaction and Unlisted  across  all  product
classifications.

   Net  sales in the Company's Consumer Direct segment  increased
$18.4  million  or  36.8% to $68.4 million  in  1998  from  $50.0
million  in 1997.  The increase in the number of stores, as  well
as a comparable stores sales increase of 13.5% contributed to the
increase  in net sales.  Of the total increase, $6.7 million  was
attributable  to the comparable store sales increase,  and  $11.7
million was attributable to that portion of 1998 sales of  stores
not  opened for all of 1997 and new stores in 1998.  The  Company
believes  that the retail stores convey the image of the  Company
and  seamlessly showcase both Company and licensee products,  and
that  this  comprehensive presentation reinforces  the  lifestyle
brand,  thus increasing consumer demand, not only in  the  retail
stores but also across all channels of distribution.

   Licensing revenue increased 38.6% to $8.4 million in 1998 from
$6.0  million in 1997, and sales of licensee product  represented
approximately  half  of the total brand  sales  at  retail.   The
increase primarily reflects incremental revenues from sales  from
existing  licensees.  The Company believes its recent entry  into
men's apparel comes at an opportune time as consumers look toward
brands  they  know and feel comfortable with.  During  1998,  the
Company  continued  its  roll  out of  men's  tailored  clothing,
launched  Kenneth  Cole men's sportswear and  dress  shirts,  and
prepared  for its early 1999 launch of loungewear.   The  Company
believes  the synergies from its efforts to reinforce  its  brand
identities through greater marketing efforts, by itself  and  its
licensees across all product categories, will continue to  propel
licensee sales.

   Consolidated  gross  profit as a percentage  of  net  revenues
increased  to  43.3%  in 1998 from 41.4% in 1997.  The  Company's
wholesale  gross profit, excluding gross profit on sales  to  the
Consumer Direct segment, increased 18.9% to $51.6 million in 1998
from  $43.4  million  in  1997.   Wholesale  gross  profit  as  a
percentage of net wholesale revenues increased substantially as a
result  of  increased  sales of men's footwear,  which  have  the
highest   gross  profit  percentages  within  Wholesale   product
categories,  and  better margins on sales  of  women's  footwear,
compared  to  1997 when the Company disposed of,  at  significant
discounts, excess Spring 1997 merchandise.  The increase in sales
of   men's   footwear  was  partially  attributable  to  improved
fulfillment  of  customer orders due to the  enhancement  of  the
Company's  open  stock  inventory  program  combined   with   EDI
replenishment.

  Consumer  Direct's gross profit percentage was  49.7%  in  1998
compared  with  52.1% in 1997.  The decrease in  Consumer  Direct
gross  profit percentage was attributable to a change in  product
mix,  with  a  greater  amount of merchandise  sourced  from  the
Company's  licensees,  which  carry lower  initial  markups  than
footwear  and handbags and the closing out of excess  inventories
relating  to  catalog operations.  However, the  Consumer  Direct
gross   profit  percentage  is  significantly  higher  than   the
Company's  Wholesale  gross profit percentage.   Accordingly,  as
sales   of  the  Consumer  Direct  segment  represent  a   larger
percentage   of   consolidated  net  sales,  it   increases   the
consolidated  gross profit percentage.  Sales from  the  Consumer
Direct  segment  were 30.0% of consolidated net revenue  in  1998
compared  with 26.1% in 1997.  Licensing revenue,  which  has  no
associated cost of goods sold, increased as a percentage  of  net
revenues to 3.7% in 1998 from 3.2% in 1997.

  Selling,   general   and  administrative  expenses,   including
shipping  and warehousing, increased 23.7% to $72.1  million  (or
31.6%  of  net revenues) in 1998 from $58.3 million (or 30.5%  of
net  revenues) in 1997.  The increase was primarily  attributable
to investment in organizational infrastructure to support growth,
marketing   and  public  relations  expenditures  to  build   the
Company's  brands, hiring of personnel and the expansion  of  the
Company's  consumer  direct  operations.   The  increase   as   a
percentage  of  net  revenue  is due  to  the  expansion  of  the
Company's  retail and outlet stores, which operate  at  a  higher
cost structure than its Wholesale operations.

  As  a result of the foregoing, operating income increased 27.9%
in  1998  to  $26.6  million (11.7% of net  revenue)  from  $20.8
million (10.9% of net revenue) in 1997.

Liquidity and Capital Resources

  The Company's capital requirements are generated primarily from
working  capital needs and the continued growth of the  business.
These include the purchase of wholesale and retail inventories in
anticipation of increased wholesale sales and new store  openings
and capital expenditures related to the expansion, renovation and
construction  of  retail  and outlet stores.   During  2000,  the
Company will incur significant capital expenditures in connection
with  relocating its executive offices and showrooms  within  New
York   City.    The  Company  primarily  relies  upon  internally
generated  cash  flows from operations to finance its  operations
and  growth however it also has the ability to borrow up to $25.0
million  under its line of credit facility.  Cash flows may  vary
from  time  to  time  as  a  result of seasonal  requirements  of
inventory,  the  Company's  open stock  inventory  program  which
requires  increased inventory levels and the  level  of  accounts
receivable  and payable balances.  At December 31, 1999,  working
capital  was $106.1 million compared to $56.6 million at December
31, 1998.

  Net  cash  provided by operating activities increased to  $40.3
million  in  1999 from $14.3 million in 1998.  This increase  was
primarily attributable to higher earnings and timing of  payables
offset  by  increased inventory levels required to support  sales
growth in footwear and for the initial inventory requirements  of
the new retail and outlet stores.

  Net  cash used in investing activities was $8.5 million in 1999
compared  to  $5.8  million in 1998.  This increase  reflects  an
increase  in capital expenditures primarily for new retail  store
openings.

Net  cash  provided by financing activities was $25.6 million  in
1999.  Net cash used in financing activities was $3.5 million  in
1998.   The  changes in net cash provided by financing activities
principally  reflect  the  issuance of 1,500,000  shares  to  Liz
Claiborne  Inc.  at  the  market price of  $19.33  per  share  in
conjunction  with  the  signing  of  the  license  agreement  for
womenswear offset by the amounts expended in the Company's  stock
repurchase  program.  As  of  March 27,  2000,  the  Company  had
purchased  1,020,000  shares of the 2,250,000  shares  authorized
under its stock repurchase program.

   The  Company currently sells substantially all of its  account
receivables  to  one  factor without recourse.  In  circumstances
where  a  customer's account cannot be factored without recourse,
the Company may take other measures to reduce its credit exposure
which  could include requiring the customer to pay in advance  or
to  provide  a letter of credit covering the sales price  of  the
merchandise ordered.

   The  Company currently has a line of credit, as amended, under
which up to $25.0 million is available to finance working capital
requirements  and  letters  of credit to  finance  the  Company's
inventory  purchases.  Borrowings available  under  the  line  of
credit  are  determined  by a specified  percentage  of  eligible
accounts receivable and inventories and bear interest at (i)  the
higher  of  The  Bank  of New York's prime lending  rate  or  the
Federal Funds rate plus 0.5% at the date of borrowing or  (ii)  a
negotiated  rate.  In  connection with the line  of  credit,  the
Company  has  agreed to eliminate all the outstanding  borrowings
under  the facility for at least 30 consecutive days during  each
calendar year.  In addition, borrowings under the line of  credit
are  secured by certain receivables of the Company.  The  Company
has  no  outstanding advances under this line of credit,  however
amounts available under the line were reduced by $3.0 million  to
$22.0 million for open letters of credit.

  Capital  expenditures  were approximately  $8.5  million,  $5.8
million  and  $4.8 million for 1999, 1998 and 1997, respectively.
Expenditures  on  furniture, fixtures and leasehold  improvements
for  new  retail store openings and expansions were $6.7 million,
$4.9   million  and  $3.3  million  in  1999,  1998   and   1997,
respectively.   The  remaining expenditures  were  primarily  for
leasehold improvements, information systems and equipment for the
company's  offices  and  warehouses.  During  2000,  the  Company
anticipates opening or expanding approximately 8 to 11 retail and
outlet stores that will require aggregate capital expenditures of
approximately $12.0 million.  The Company also expects  to  spend
approximately $6.0 million for the initial inventory requirements
of  these new stores.  These requirements include the opening  of
the Company's New York City and Seattle, Washington larger format
retail stores to showcase the Company's products and image.

   The  Company  also anticipates that it will require  increased
capital expenditures to support its continued growth including an
increase  in  its office and warehouse space and enhancements  to
its information systems and website development.

   In  December  1998, the Company entered into a  15-year  lease
which,  over  a period of three to five years, will  provide  the
Company  with approximately 126,000 square feet of office  space,
enabling  it to relocate its corporate headquarters to  a  larger
location  in  New  York  City and consolidate  various  satellite
office  space.  The Company commenced renovations and expects  to
begin its relocation in mid-2000.  Currently, the Company expects
to incur capital expenditures of approximately $10 to $15 million
over the next two to three years.

   The  Company believes that it will be able to satisfy its cash
requirements  for  1999, including requirements  for  its  retail
expansion,  new  corporate office space and  information  systems
improvements,   primarily  with  cash   flow   from   operations,
supplemented by borrowings under its line of credit.

Year 2000

      In  prior  years,  the  Company discussed  the  nature  and
progress  of  its plans to become Year 2000 compliant.   In  late
1999,  the  Company  completed its replacement,  remediation  and
testing   of  systems.   As  a  result  of  those  planning   and
implementation  efforts, the Company experienced  no  significant
disruptions in mission critical information technology  and  non-
information   technology  systems  and  believes  those   systems
successfully responded to the Year 2000 date change.  The Company
expensed  approximately $1.0 million during  1999  in  connection
with  preparing for year 2000.  The Company is not aware  of  any
material  problems resulting from Year 2000 issues,  either  with
its  products, its internal systems, or the products and services
of  third  parties.   The Company will continue  to  monitor  its
information  systems  and  those of  its  suppliers  and  vendors
throughout  the year 2000 to ensure any latent Year  2000  issues
that may arise are addressed promptly.

Exchange Rates

  The  Company  routinely enters into forward exchange  contracts
for  its  future  purchases of inventory denominated  in  foreign
currencies,  primarily the Italian Lira and Spanish  Peseta.   At
December  31,  1999,  forward exchange contracts  totaling  $10.5
million  were  outstanding  with settlement  dates  ranging  from
January  2000  through  May 2000.  Gains and  losses  on  forward
exchange contracts are deferred and accounted for as part of  the
purchase  price of imported merchandise.  At December  31,  1999,
the  unrealized loss on these forward contracts is  approximately
$272,000.   The  Company expects to continue to  routinely  enter
into  additional foreign exchange contracts throughout the  year.
While  the  Company  believes that its  current  procedures  with
respect  to  the  reduction  of  risk  associated  with  currency
exchange rate fluctuations is adequate, there can be no assurance
that such fluctuations will not have a material adverse effect on
the results of operations of the Company in the future.

  On  January  1,  1999,  the  Euro became  the  official  single
currency of the European Economic and Monetary Union.  As of this
date,  the  conversion rates of the national  currencies  of  the
union  members  were  fixed irrevocably.  During  the  transition
period between January 1999 and January 2002, parties may pay for
goods  using  either  the  Euro or the  national  currency.   The
Company  believes conversion to the Euro will not have a material
effect  on  the  Company's  financial  condition  or  results  of
operation.

  Inventory  purchases  from contract manufacturers  in  the  Far
East and Brazil are denominated in United States dollars and  the
recent devaluation of many of these currencies against the United
States  dollar  has not had any material adverse  impact  on  the
Company.   However,  future  purchase prices  for  the  Company's
products  may  be impacted by fluctuations in the  exchange  rate
between the United States dollar and the local currencies of  the
contract  manufacturer, which may effect the  Company's  cost  of
goods  in the future.  The Company does not believe the potential
effects of such fluctuations would have a material adverse affect
on the Company.

Effects of Inflation

  The Company does not believe that the relatively moderate rates
of  inflation experienced over the last few years in  the  United
States,  where  it  primarily competes, have  had  a  significant
effect on revenues or profitability.

Item  7A.  Quantitative and Qualitative Disclosures about  Market
Risk

   The  Company  does not believe it has a material  exposure  to
market  risk.   The  Company  is primarily  exposed  to  currency
exchange  rate  risks with respect to its inventory  transactions
denominated  in Italian Lira and Spanish Pesetas, both  of  which
have  been  converted  to  the Euro effective  January  1,  1999.
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 December  31,
1999,  the Company had forward exchange contracts totaling  $10.5
million  with an unrealized loss of approximately $272,000.   The
Company's  earnings may also be affected by changes in short-term
interest rates as a result of borrowings under its line of credit
facility.   A  two or less percentage point increase in  interest
rates affecting the Company's credit facility would not have  had
a material effect on the Company's 1999 and 1998 net income.

Item 8. Financial Statements and Supplementary Data

   See  page  F-1  for  a  listing of the consolidated  financial
statements submitted as part of this report.

Item  9.    Changes  in  and Disagreements  With  Accountants  on
Accounting and Financial Disclosure

  None.
<PAGE>
                         PART III

Item 10.  Directors and Executive Officers of the Registrant

   Except  for the information regarding directors and  executive
officers  of  the registrant, which is included in  Part  I,  the
information  required  by  this item will  be  contained  in  the
Company's Proxy Statement for its Annual Shareholders Meeting  to
be held May 25, 2000 to be filed with the Securities and Exchange
Commission  within  120  days after  December  31,  1999  and  is
incorporated herein by reference in response to this item.

Item 11.  Executive Compensation

   The information required by this item will be contained in the
Company's Proxy Statement for its Annual Shareholders Meeting  to
be held May 25, 2000 to be filed with the Securities and Exchange
Commission  within  120  days after  December  31,  1999  and  is
incorporated herein by reference in response to this item.

Item  12.   Security Ownership of Certain Beneficial  Owners  and
Management

   The information required by this item will be contained in the
Company's Proxy Statement for its Annual Shareholders Meeting  to
be held May 25, 2000 to be filed with the Securities and Exchange
Commission  within  120  days after  December  31,  1999  and  is
incorporated herein by reference in response to this item.

Item 13.  Certain Relationships and Related Transactions

   The information required by this item will be contained in the
Company's Proxy Statement for its Annual Shareholders Meeting  to
be held May 25, 2000 to be filed with the Securities and Exchange
Commission  within  120  days after December  31,  1999,  and  is
incorporated herein by reference in response to this item.

<PAGE>

                             PART IV

Item 14.  Exhibits, Financial Statement Schedules, and Reports on
Form 8-K

(a)  (1)  See  page  F-1 for a listing of consolidated  financial
statements submitted as part of this report.

(a)  (2) Schedule II - Valuation and Qualifying Accounts

  All  other  schedules,  for  which provision  is  made  in  the
  applicable   accounting  regulations  of  the  Securities   and
  Exchange   Commission  are  not  required  under  the   related
  instructions,  are  shown in the financial  statements  or  are
  inapplicable and therefore have been omitted.

(a) (3) The following exhibits are included in this report.

   Exhibit
      No.
                            Description
     3.01       -Restated Certificate of Incorporation of Kenneth
     Cole  Productions, Inc.; Certificate of Merger of Cole Fifth
     Avenue,   Inc.   into   Kenneth  Cole   Productions,   Inc.;
     Certificate  of  Merger  of  Cole  Productions,  Inc.   into
     Kenneth  Cole  Productions, Inc.; Certificate of  Merger  of
     Cole  Sunset,  Inc.  into  Kenneth Cole  Productions,  Inc.;
     Certificate  of  Merger  of Cole  Union  Street,  Inc.  into
     Kenneth  Cole  Productions, Inc.; Certificate of  Merger  of
     Cole   West,  Inc.  into  Kenneth  Cole  Productions,  Inc.;
     Certificate  of Merger of Kenneth Cole Woodbury,  Inc.  into
     Kenneth  Cole  Productions, Inc.; Certificate of  Merger  of
     Kenneth   Cole   Leather  Goods,  Inc.  into  Kenneth   Cole
     Productions,  Inc.; Certificate of Merger of  Unlisted  into
     Kenneth  Cole  Productions, Inc. (Incorporated by  reference
     to  Exhibit 3.01 to the Company's Registration Statement  on
     Form S-1, Registration No. 33-77636).
     3.02       -By-laws. (Incorporated by reference  to  Exhibit
     3.02  to  the Company's Registration Statement on Form  S-1,
     Registration No. 33-77636).
     4.01       -Specimen  of  Class A Common Stock  Certificate.
     (Incorporated by reference to Exhibit 4.01 to the  Company's
     Registration  Statement on Form S-1,  Registration  No.  33-
     77636).
     10.01 -Tax  Matters  Agreement, dated as of  June  1,  1994,
     among Kenneth Cole Productions, Inc., Kenneth D. Cole,  Paul
     Blum  and  Stanley A. Mayer. (Incorporated by  reference  to
     Exhibit  10.01  to the Company's Registration  Statement  on
     Form S-1, Registration No. 33-77636).
     10.02 -Term Loan Agreement, dated as of May 26, 1994, by and
     among  Kenneth Cole Productions, Inc., Kenneth Cole  Leather
     Goods,  Inc., Unlisted, Inc., Cole West, Inc., Kenneth  Cole
     Financial Services, Inc., Kenneth Cole Woodbury, Inc.,  Cole
     Fifth Avenue, Inc., Cole Union Street, Inc. and The Bank  of
     New  York;  Promissory Notes, dated May 26, 1994, issued  by
     each  of  Kenneth Cole Leather Goods, Inc., Unlisted,  Inc.,
     Cole  West,  Inc.,  Kenneth Cole Financial  Services,  Inc.,
     Kenneth  Cole Woodbury, Inc., Cole Fifth Avenue, Inc.,  Cole
     Union  Street,  Inc.  to The Bank of New  York;  Shareholder
     Guaranty by and between Kenneth D. Cole and The Bank of  New
     York,  dated as of May 26, 1994; Subordination Agreement  by
     and  among Kenneth D. Cole, Kenneth Cole Productions,  Inc.,
     Kenneth  Cole  Leather  Goods, Inc.,  Unlisted,  Inc.,  Cole
     West,  Inc., Kenneth Cole Financial Services, Inc.,  Kenneth
     Cole  Woodbury,  Inc., Cole Fifth Avenue, Inc.,  Cole  Union
     Street,  Inc. and The Bank of New York, dated  as  of  April
     13,  1994;  Reinvestment Agreement by and among  Kenneth  D.
     Cole,  Kenneth Cole Productions, Inc., Unlisted, Inc.,  Cole
     West,  Inc., Kenneth Cole Financial Services, Inc.,  Kenneth
     Cole  Woodbury,  Inc., Cole Fifth Avenue, Inc.,  Cole  Union
     Street,  Inc. and The Bank of New York, dated as of May  26,
     1994;  Amendment  No. 1 to the Term Loan Agreement  and  the
     Reinvestment  Agreement  by  and  among  Kenneth  D.   Cole,
     Kenneth  Cole  Productions, Inc., Cole West,  Inc.,  Kenneth
     Cole  Woodbury,  Inc., Cole Fifth Avenue, Inc.,  Cole  Union
     Street, Inc., Kenneth Cole Financial Services, Inc. and  The
     Bank  of  New  York, dated as of May 31, 1994. (Incorporated
     by  reference to Exhibit 10.02 to the Company's Registration
     Statement on Form S-1, Registration No. 33-77636).

     10.03-Line of Credit Letter, dated January 13, 1994, from The
     Bank  of New York to Kenneth Cole Productions, Inc., Kenneth
     Cole  Leather  Goods,  Inc. and Unlisted,  Inc.;  $7,500,000
     Promissory  Note,  dated February 1, 1994  by  Kenneth  Cole
     Productions,  Inc.,  Kenneth Cole Leather  Goods,  Inc.  and
     Unlisted,  Inc.  issued  to The Bank  of  New  York;  Letter
     Agreement, dated December 16, 1993, between The Bank of  New
     York  and  Kenneth Cole Productions, Inc.,  Unlisted,  Inc.,
     Kenneth  Cole  Leather Goods, Inc., Cole Productions,  Inc.,
     Cole  West,  Inc.,  Kenneth Cole Financial  Services,  Inc.,
     Cole  Woodbury,  Inc.,  Cole Sunset,  Inc.  and  Cole  Fifth
     Avenue,  Inc.; General Guarantees, dated December 16,  1993,
     in  favor  of  The Bank of New York by Kenneth Cole  Leather
     Goods,  Inc.  for  Unlisted, Inc., by Kenneth  Cole  Leather
     Goods,   Inc.  for  Kenneth  Cole  Productions,   Inc.,   by
     Unlisted,  Inc.  for  Kenneth  Cole  Productions,  Inc.,  by
     Unlisted,  Inc.  for Kenneth Cole Leather  Goods,  Inc.,  by
     Kenneth  Cole  Productions, Inc. for  Kenneth  Cole  Leather
     Goods,  Inc.,  and  by  Kenneth Cole Productions,  Inc.  for
     Unlisted, Inc.; General Loan and Security Agreements,  dated
     December 16, 1993, between The Bank of New York and each  of
     Kenneth Cole Productions, Inc., Kenneth Cole Leather  Goods,
     Inc.  and  Unlisted, Inc.; and Personal  Guarantees  of  Mr.
     Kenneth  D. Cole, dated December 16, 1993, in favor  of  The
     Bank  of  New  York  for  Kenneth  Cole  Productions,  Inc.,
     Unlisted,   Inc.  and  Kenneth  Cole  Leather  Goods,   Inc.
     (Incorporated  by  reference  to  Exhibit   10.03   to   the
     Company's  Registration Statement on Form S-1,  Registration
     No. 33-77636).
                Line  of  Credit Letter, dated December  9,  1994
     from  The  Bank  of  New York to Kenneth  Cole  Productions,
     Inc.;  $7,500 Promissory Note, dated December  15,  1994  by
     Kenneth  Cole Productions, Inc. issued to The  Bank  of  New
     York;  Letter of Termination of Personal Guarantees  of  Mr.
     Kenneth  D.  Cole, dated December 8, 1994, in favor  of  The
     Bank  of  New  York  for  Kenneth  Cole  Productions,  Inc.,
     Unlisted,   Inc.  and  Kenneth  Cole  Leather  Goods,   Inc.
     (Incorporated  by  reference  to  Exhibit   10.03   to   the
     Company's 1994 Form 10-K).
     10.03A-$10,000  Promissory  Note, dated  July  31,  1995  by
     Kenneth  Cole Productions, Inc. issued to The  Bank  of  New
     York.   (Previously   filed  as  Exhibit   10.03A   to   the
     Registrant's Annual Report on Form 10-K for the  year  ended
     December 31, 1996 and incorporated herein by reference).
     *10.04-Kenneth  Cole  Productions, Inc.  1994  Stock  Option
     Plan.  (Incorporated by reference to Exhibit  10.04  to  the
     Company's  Registration Statement on Form S-1,  Registration
     No. 33-77636).
     *10.05-Employment  Agreement, dated as of  April  30,  1994,
     between Kenneth Cole Productions, Inc. and Kenneth D.  Cole.
     (Incorporated  by  reference  to  Exhibit   10.05   to   the
     Company's  Registration Statement on Form S-1,  Registration
     No. 33-77636).
     *10.06-Employment  Agreement, dated as of  April  30,  1994,
     between  Kenneth  Cole  Productions,  Inc.  and  Paul  Blum.
     (Incorporated  by  reference  to  Exhibit   10.06   to   the
     Company's  Registration Statement on Form S-1,  Registration
     No. 33-77636).
     *10.07     -Employment Agreement, dated as of  April  30,
     1994, between Kenneth Cole Productions, Inc. and Stanley  A.
     Mayer;  Stock  Option Agreement dated as of March  31,  1994
     between  Kenneth  Cole  Productions,  Inc.  and  Stanley  A.
     Mayer.  (Incorporated by reference to Exhibit 10.07  to  the
     Company's  Registration Statement on Form S-1,  Registration
     No. 33-77636).
                Stock Option Agreement dated as of June 1,  1994,
     between  Kenneth  Cole  Productions,  Inc.  and  Stanley  A.
     Mayer;  Stock  Option Agreement dated as of  July  7,  1994,
     between Kenneth Cole Productions, Inc. and Stanley A.  Mayer
     (Incorporated  by  reference  to  Exhibit   10.07   to   the
     Company's 1994 Form 10-K).
     10.08      -Collective Bargaining Agreement by  and  between
     the  New  York  Industrial Council of the  National  Fashion
     Accessories  Association, Inc. and Leather Goods,  Plastics,
     Handbags  and Novelty Workers' Union, Local 1, dated  as  of
     April  25, 1987; Memorandum of Agreement by and between  the
     New   York  Industrial  Council  of  the  National   Fashion
     Accessories  Association, Inc. and Leather Goods,  Plastics,
     Handbags  and Novelty Workers' Union, Local 1,  Division  of
     Local  342-50  United  Food  and Commercial  Workers  Union,
     dated  as  of  June 16, 1993. (Incorporated by reference  to
     Exhibit  10.08  to the Company's Registration  Statement  on
     Form S-1, Registration No. 33-77636).
     10.09-Memorandum of Agreement between the New York Industrial
     Council  of  the  National  Fashion Accessories  Association
     Inc.  and  Local  1 Leather Goods, Plastics,  Handbags,  and
     Novelty Workers Union, Division of Local 342-50 United  Food
     and  Commercial Workers Union (Previously filed  as  Exhibit
     10.1  to the Registrant's Quarterly Report on Form 10-Q  for
     the  quarterly  period ended June 30, 1996 and  incorporated
     herein by reference).
     *10.10      Employment   Agreement  between   Kenneth   Cole
     Productions,  Inc.,  and  Paul Blum.  (Previously  filed  as
     Exhibit  10.2 to the Registrant's Quarterly Report  on  Form
     10-Q  for  the  quarterly period ended  June  30,  1996  and
     incorporated herein by reference).
     10.11 Sublease  Agreement,  dated  June  17,  1996,  between
     Kenneth   Cole   Productions,   Inc.   and   Liz   Claiborne
     Accessories,  Inc.  (Incorporated by  reference  to  Exhibit
     10.11 to the Company's 1996 Form 10-K).
     *10.12     Amended  and  Restated Kenneth Cole  Productions,
     Inc.  1994 Stock Option Plan (Previously filed as an Exhibit
     to  the Registrant's Proxy Statement filed on April 22, 1997
     and incorporated herein by reference).
     *10.13      Employment   Agreement  between   Kenneth   Cole
     Productions, Inc. and Susan Hudson (Previously filed  as  an
     Exhibit to the Company's 1997 Form 10-K).
     10.14   Lease  Agreement, dated December 17,  1998,  between
     Kenneth  Cole  Productions,  Inc.  and  SAAR  Company,  LLC.
     (Previously filed as Exhibit 10.14 to the Registrants Annual
     Report on Form 10-K for the year ended December 31, 1998 and
     incorporated by reference).
     10.15      Common Stock Purchase Agreement, dated July 20,
     1999, between Liz Claiborne Inc. and Kenneth Cole Productions,
     Inc.  (Previously filed as Exhibit 10.01 to the Registrants
     Quarterly Report on Form 10-Q for the quarterly period ended
     September 30, 1999).
     10.16   Registration Rights Agreement, dated July 20, 1999,
     between Liz Claiborne Inc. and Kenneth Cole Productions, Inc.
     (Previously filed as Exhibit 10.02 to the Registrants Quarterly
     Report on Form 10-Q for the quarterly period ended September 30,
     1999).
     10.17         License Agreement, dated July 20, 1999, by and
     between L.C.K.L., LLC and K.C.P.L., Inc.  (Portions of this
     exhibit have been omitted pursuant to a request for confidential
     treatment and been filed separately with the Securities and
     Exchange Commission.  Such portions are designated by a "*".
     (Previously filed as Exhibit 10.03 to the Registrants Quarterly
     Report on Form 10-Q for the quarterly period ended September 30,
     1999).
     +21.01    List of Subsidiaries
     +23.01    Consent of Ernst & Young LLP
     +27.01    Financial Data Schedules
____________________________
*           Management   contract   or   compensatory   plan   or
     arrangement  required  to  be identified  pursuant  to  Item
     14(a) of this report.
+         Filed herewith.

(b) Reports on Form 8-K

     None.

(b)   See (a) (3) above for a listing of the exhibits included as
  a part of this report.

<PAGE>
         Kenneth Cole Productions, Inc. and Subsidiaries

           Index to Consolidated Financial Statements




                                                                       Page

Report of Independent Auditors                                          F-2

Consolidated Balance Sheets as of December 31, 1999 and 1998            F-3

Consolidated Statements of Income for the years ended
 December 31, 1999, 1998 and 1997                                       F-5

Consolidated Statements of Changes in Shareholders' Equity
 for the years ended December 31, 1999, 1998 and 1997                   F-6

Consolidated Statements of Cash Flows for the years ended
 December 31, 1999, 1998 and 1997                                       F-7

Notes to Consolidated Financial Statements                              F-8

<PAGE>

                 Report of Independent Auditors


Board of Directors and Shareholders
Kenneth Cole Productions, Inc. and Subsidiaries

  We have audited the accompanying consolidated balance sheets of
Kenneth  Cole Productions, Inc. and subsidiaries as  of  December
31,  1999  and  1998, and the related consolidated statements  of
income, changes in shareholders' equity, and cash flows for  each
of  the  three years in the period ended December 31,  1999.  Our
audits  also included the financial statement schedule listed  at
Item 14(a).  These  financial  statements  and  schedule  are the
responsibility of the  Company's  management. Our  responsibility
is to  express  an  opinion  on  these  financial  statements and
schedule based on our audits.

   We  conducted our audits in accordance with auditing standards
generally accepted in the United States. Those standards  require
that we plan and perform the audit to obtain reasonable assurance
about  whether  the  financial statements are  free  of  material
misstatement.  An  audit includes examining,  on  a  test  basis,
evidence  supporting the amounts and disclosures in the financial
statements.  An  audit  also includes  assessing  the  accounting
principles used and significant estimates made by management,  as
well  as evaluating the overall financial statement presentation.
We  believe  that our audits provide a reasonable basis  for  our
opinion.

   In  our  opinion, the financial statements referred  to  above
present  fairly,  in  all  material  respects,  the  consolidated
financial  position  of  Kenneth  Cole  Productions,   Inc.   and
subsidiaries  at December 31, 1999 and 1998, and the consolidated
results of their operations and their cash flows for each of  the
three  years in the period ended December 31, 1999, in conformity
with  accounting  principles generally  accepted  in  the  United
States.  Also, in our opinion, the  related  financial  statement
schedule,  when  considered in  relation  to the  basic financial
statements  taken  as a whole,  present  fairly  in all  material
respects the information set forth therein.


New York, New York                           ERNST & YOUNG LLP
February 25, 2000

<PAGE>
<TABLE>
         Kenneth Cole Productions, Inc. and Subsidiaries

                   Consolidated Balance Sheets

<CAPTION>
                                                          December 31,
                                                      1999           1998
<S>                                              <C>            <C>
Assets
Current assets:
Cash                                              $ 71,415,000   $ 13,824,000
Due from factors                                    26,925,000     19,552,000
Accounts receivable, less allowance for doubtful
 accounts of $554,000 in 1999 amd $125,000 in 1998   6,990,000      4,874,000
Inventories                                         39,553,000     32,957,000
Prepaid expenses and other current assets              375,000      1,735,000
Deferred taxes                                       1,766,000        718,000
                                                  ------------   ------------
Total current assets                               147,024,000     73,660,000

Property and equipment-at cost, less accumulated
 depreciation and amortization                      19,431,000     16,171,000

Other assets:
 Deferred taxes                                      1,484,000        403,000
 Deposits and sundry                                 1,868,000      2,703,000
 Deferred compensation plan assets                   7,052,000      3,743,000
                                                  ------------   ------------
Total other assets                                  10,404,000      6,849,000
                                                  ------------   ------------
Total assets                                      $176,859,000   $ 96,680,000
                                                  ============   ============
</TABLE>

        See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
              Kenneth Cole Productions, Inc. and Subsidiaries
<CAPTION
                 Consolidated Balance Sheets (continued)


                                                           December 31,
                                                      1999           1998
<S>                                              <C>            <C>
Liabilities and shareholders' equity
Current liabilities:
Accounts payable                                  $ 27,323,000   $ 10,644,000
Accrued expenses and other current liabilities      10,372,000      4,634,000
Income taxes payable                                 3,272,000      1,738,000
                                                  ------------   ------------
Total current liabilities                           40,967,000     17,016,000

Accrued rent                                         2,932,000      1,472,000
Deferred compensation plan liabilities               7,052,000      3,743,000
Obligations under capital lease                        577,000        760,000

Commitments and contingencies

Shareholders' equity:
Series A Convertible Preferred stock, par value
 $1.00, 1,000,000 shares authorized,
 28,927 issued in 1999 and 1998                         29,000         29,000
Class A Common Stock, par value $.01, 20,000,000
 shares authorized, 13,058,057 and 11,414,546
 issued in 1999 and 1998                               131,000        114,000
Class B Convertible Common Stock, par value $.01,
 6,000,000 shares authorized, 5,785,398
 outstanding in 1999 and 1998                           58,000         58,000
Additional paid-in capital                          53,140,000     22,217,000
Cumulative other comprehensive income                  235,000         74,000
Retained earnings                                   81,093,000     56,165,000
                                                  ------------   ------------
                                                   134,686,000     78,657,000
Class A Common Stock in treasury, at cost,
723,750 and 525,000 shares in 1999 and 1998         (9,355,000)    (4,968,000)
                                                  ------------   ------------
Total shareholders' equity                         125,331,000     73,689,000
                                                  ------------   ------------
Total liabilities and shareholders' equity        $176,859,000   $ 96,680,000
                                                  ============   ============
</TABLE>
     See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
       Kenneth Cole Productions, Inc. and Subsidiaries
<CAPTION>
                    Consolidated Statements of Income


                                              Year ended December 31,
                                        1999          1998           1997
<S>                              <C>            <C>            <C>
Net sales                         $ 295,353,000  $ 219,781,000  $ 185,278,000
Licensing revenue                    14,955,000      8,357,000      6,028,000
                                  -------------  -------------  -------------
Net revenue                         310,308,000    228,138,000    191,306,000
Cost of goods sold                  168,856,000    129,403,000    112,183,000
                                  -------------  -------------  -------------
Gross profit                        141,452,000     98,735,000     79,123,000

Selling, general, and
administrative expenses             100,836,000     72,145,000     58,330,000
                                  -------------  -------------  -------------
Operating income                     40,616,000     26,590,000     20,793,000
Interest income (expense), net        1,280,000        404,000       (202,000)
                                  -------------  -------------  -------------
Income before provision for
income taxes                         41,896,000     26,994,000     20,591,000
Provision for income taxes           16,968,000     10,663,000      8,189,000
                                  -------------  -------------  -------------
Net income                        $  24,928,000  $  16,331,000  $  12,402,000
                                  =============  =============  =============

Earnings per share:
     Basic                                $1.24           $.82           $.63
     Diluted                              $1.18           $.80           $.61

Shares used to compute earnings per share:
     Basic                           20,102,000     19,833,000     19,743,000
     Diluted                         21,059,000     20,456,000     20,408,000
</TABLE>



       See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
                      Kenneth Cole Productions, Inc. and Subsidiaries
                  Consolidated Statements of Changes in Shareholders' Equity
<CAPTION>
                          Class A Common Stock         Class B Common Stock
                           Number                       Number
                          of Shares    Amount          of Shares    Amount
<S>                     <C>          <C>              <C>         <C>
Balance at
 December 31,1996        11,029,769   $111,000         5,785,398   $ 58,000
Net income
Foreign currency
 translation adjustment
Comprehensive income
Exercise of stock
 options and related
 tax benefits                85,472      1,000
Amortization of
 deferred compensation
                         ----------------------------------------------------
Balance at
 December 31, 1997       11,115,241    112,000         5,785,398     58,000
Net income
Foreign currency
 translation adjustment
Comprehensive income
Exercise of stock
 options and related
 tax benefits               299,305      2,000
Purchase of Class A
 common stock
                         ----------------------------------------------------
Balance at
 December 31, 1998       11,414,546    114,000         5,785,398     58,000
Net income
Foreign currency
 traslation adjustment
Comprehensive income
Exercise of stock
 options and related
 tax benefits               143,511      2,000
Purchase of Class A
 common stock
Stock issuance            1,500,000     15,000
                         ----------------------------------------------------
Balance at
 December 31, 1999       13,058,057   $131,000         5,785,398    $58,000
                         ====================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                             Series A
                            Convertible                         Accumulated
                          Preferred Stock       Additional         Other
                           Number                Paid-In       Comprehensive
                          of Shares  Amount      Capital          Income
<S>                      <C>        <C>        <C>             <C>
Balance at
 December 31, 1996        28,927     $29,000    $19,038,000
Net income
Foreign currency
 translation adjustment                                         $ 90,000
Comprehensive income
Exercise of stock
 options and related
 tax benefits                                       579,000
Amortization of
 deferred compensation
                          --------------------------------------------------
Balance at
 December 31, 1997        28,927      29,000     19,617,000       90,000
Net income
Foreign currency
 translation adjustment                                          (16,000)
Comprehensive income
Exercise of stock
 options and related
 tax benefits                                     2,600,000
Purchase of Class A
 common stock
                          --------------------------------------------------
Balance at
 December 31, 1998        28,927      29,000     22,217,000       74,000
Net income
Foreign currency
 translation adjustment                                          161,000
Comprehensive income
Exercise of Stock
 options and related
 tax benefits                                     1,938,000
Purchase of Class A
 common stock
Stock issuance                                   28,985,000
                          --------------------------------------------------
Balance at
 December 31, 1999        28,927     $29,000    $53,140,000     $235,000
                          ==================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                    Treasury Stock
                      Retained     Number               Deferred
                      Earnings    of Shares  Amount   Compensation    Total
<S>                 <C>          <C>       <C>          <C>       <C>
Balance at
 December 31, 1996   $27,432,000                         $(69,000) $ 43,599,000
Net income            12,402,000                                     12,402,000
Foreign currency
 translation adjustment                                                  90,000
Comprehensive income                                                 12,492,000
Exercise of stock
 options and related
 tax benefits                                                           580,000
Amortization of
 deferred compensation                                     69,000        69,000
                     -----------------------------------------------------------
Balance at
 December 31, 1997    39,834,000                                     59,740,000
Net income            16,331,000                                     16,331,000
Foreign currency
 translation adjustment                                                 (16,000)
Comprehensive income                                                 16,315,000
Exercise of stock
 options and related
 tax benefits                                                         2,602,000
Purchase of Class A
 common stock                     (525,000) $(4,968,000)             (4,968,000)
                      ----------------------------------------------------------
Balance at
 December 31, 1998    56,165,000  (525,000)  (4,968,000)             73,689,000
Net income            24,928,000                                     24,928,000
Foreign currency
 translation adjustment                                                 161,000
Comprehensive income                                                 25,089,000
Exercise of stock
 options and related
 tax benefits                                                         1,940,000
Purchase of Class A
 common stock                     (198,750)  (4,387,000)             (4,387,000)
Stock issuance                                                       29,000,000
                      ----------------------------------------------------------
Balance at
 December 31, 1999   $81,093,000  (723,750) $(9,355,000)        0  $125,331,000
                      ==========================================================
</TABLE>
          See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
                 Kenneth Cole Productions, Inc. and Subsidiaries
                     Consolidated Statements of Cash Flows
<CAPTION>
                                            1999          1998          1997
<S>                                      <C>          <C>          <C>
Cash flows from operating activities
Net income                                $24,928,000  $16,331,000  $12,402,000
Adjustments to reconcile net income to
 net cash provided by operating activities:
Depreciation and amortization               4,698,000    2,791,000    1,953,000
Impairment of long-lived assets               547,000
Unrealized gain on deferred
 compensation plan                         (1,096,000)    (502,000)    (153,000)
Provision for doubtful accounts             1,344,000      197,000      157,000
Amortization of deferred compensation                                    69,000
Provision (benefit) for deferred taxes     (2,129,000)    (373,000)     152,000
Changes in operating assets and liabilities:
 (Increase) decrease in due from factors   (7,373,000)   3,740,000   (5,316,000)
 Increase in accounts receivable           (3,460,000)  (1,207,000)    (682,000)
 (Increase) decrease in inventories        (6,596,000)  (9,592,000)   5,900,000
 Decrease (increase) in prepaid expenses
   and other current assets                 1,360,000     (315,000)    (419,000)
 Increase in deposits and deferred
   compensation assets                     (1,378,000)  (2,119,000)  (1,856,000)
 Increase in income taxes payable           2,286,000    1,140,000      632,000
 Increase (decrease) in accounts payable   16,679,000      807,000   (2,901,000)
 Increase in accrued expenses and
   other current liabilities                5,724,000    1,068,000      934,000
 Increase in other non-current liabilities  4,769,000    2,357,000    1,141,000
                                           ----------   ----------   ----------
Net cash provided by operating activities  40,303,000   14,323,000   12,013,000

Cash flows from investing activities
Acquisition of property and equipment, net (8,505,000)  (5,784,000)  (4,832,000)
                                           ----------   ----------   ----------
Net cash used in investing activities      (8,505,000)  (5,784,000)  (4,832,000)

Cash flows from financing activities
Repayment of revolving line of credit, net                             (440,000)
Proceeds from exercise of stock options     1,188,000    1,506,000      395,000
Proceeds from issuance of stock            29,000,000
Repayment of long-term debt                                             (49,000)
Principle payments of capital
  lease obligations                          (169,000)     (40,000)
Purchase of treasury stock                 (4,387,000)  (4,968,000)
                                           ----------   ----------   ----------
Net cash provided by (used in)
  financing activities                     25,632,000   (3,502,000)     (94,000)
Effect of exchange rate changes on cash       161,000      (16,000)      90,000
                                           ----------   ----------   ----------
Net increase in cash                       57,591,000    5,021,000    7,177,000
Cash, beginning of year                    13,824,000    8,803,000    1,626,000
                                           ----------   ----------   ----------
Cash, end of year                         $71,415,000  $13,824,000  $ 8,803,000
                                           ==========   ==========   ==========

Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest                                  $   109,000  $    29,000  $   323,000
Income taxes                              $16,812,000  $ 9,901,000  $ 7,396,000
</TABLE>
  See accompanying notes to consolidated financial statements.
<PAGE>
                 Kenneth Cole Productions, Inc.
           Notes to Consolidated Financial Statements

                        December 31, 1999


Note A  -  Summary of Significant Accounting Policies

1.  Description of business

   Kenneth  Cole  Productions, Inc.  and  its  subsidiaries  (the
"Company") designs, sources and markets a broad range of  quality
footwear  and  handbags, and through license agreements,  designs
and  markets men's and women's apparel and accessories under  its
Kenneth  Cole  New  York, Reaction Kenneth Cole and  Unlisted.com
brands  for the fashion conscious consumer.  The Company  markets
its  products for sale to more than 3,700 department  stores  and
specialty  store locations in the United States  and  in  several
foreign countries, through its retail and outlet store base,  and
its  interactive website.  The Company also distributes  consumer
catalogues  that feature a variety of Kenneth Cole New  York  and
Reaction Kenneth Cole branded products.

2.   Stock Split

   On February 23, 2000, the Board of Directors declared a three-
for-two  stock  split  to be effected in  the  form  of  a  stock
dividend.   Shareholders of record on March 6, 2000 will  receive
one  additional share of common stock for each two  shares  held.
The distribution date is on or about March 27, 2000.

   In order to have effectuated the stock split for the shares of
outstanding  Class B Common Stock, 2,892,699 shares  of  Class  B
Common Stock would have been required to be issued.  As of  March
6, 2000, 214,602 shares of authorized but unissued Class B Common
Stock  remained  available for  future issuance.  As a result, an
insufficient number of authorized and unissued  shares of Class B
Common Stock were  available for  distribution on March 27, 2000,
the distribution date for the stock split. Therefore, the Company
issued in the form of a dividend 28,927  shares  of its Series  A
Convertible Preferred  Shares to the  holders of  Class  B Common
Stock in lieu of shares of Class B Common Stock.   Each share  of
Series A Convertible Preferred Stock is automatically convertible
into   100  shares  of   Class  B  Common  Stock  upon   the  due
authorization of a sufficient number of Class B Common  Stock  to
permit  such  conversion.  Accordingly,  subject  to  shareholder
approval  on May 25, 2000, the Board of Directors has approved  a
resolution  to  increase the number of shares of Class  B  Common
Stock  from  6.0 million to 9.0 million to permit the conversion,
thereby  providing the holders of Series A Convertible  Preferred
Stock  with  the shares of Class B Common Stock that should  have
been issued to them pursuant to the stock split.

   All applicable share and per share data have been adjusted for
the stock split.  Earnings per share also reflects the conversion
of Series A Convertible Preferred Stock to Class B Common Stock.

3.    Principles of consolidation

   The consolidated financial statements include the accounts  of
Kenneth Cole Productions, Inc. and its wholly-owned subsidiaries.
Intercompany  transactions and balances have been  eliminated  in
consolidation.

4.    Use of estimates

   The  preparation  of financial statements in  conformity  with
generally  accepted accounting principles requires management  to
make  estimates and assumptions that affect the reported  amounts
of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements, as  well  as
the   reported  amounts  of  revenues  and  expenses  during  the
reporting  period.   Actual  results  could  differ  from   those
estimates.

5.    Cash and cash equivalents

   The  Company  considers all highly liquid investments  with  a
maturity  of three months or less at the time of purchase  to  be
cash equivalents.

6.    Inventories

  Inventories, which consist of finished goods, are stated at the
lower  of  cost  or market. Cost is determined by  the  first-in,
first-out method.

7.  Property and equipment

   Property  and  equipment are stated at cost  less  accumulated
depreciation  and  amortization.  Depreciation and  amortization,
which  includes the amortization of assets recorded under capital
leases,   are  computed  using  the  straight-line  method   over
estimated  useful  lives  ranging  from  three  to  seven  years.
Leasehold improvements are amortized by the straight-line  method
over  the term of the related lease or the estimated useful life,
whichever is less.

   The  Company reviews long-lived assets for possible impairment
whenever  events  or changes in circumstances indicate  that  the
carrying amount of an asset may not be recoverable as measured by
comparing  the undiscounted future cash flows to the asset's  net
book  value.   The  Company has recorded  a  non-cash  charge  of
$547,000 related to the write down of asset values of one of  the
Company's  retail stores.  Impaired assets are  recorded  at  the
lesser of their carrying value or fair value.

8.  Income taxes

   The  Company  accounts for income taxes  using  the  liability
method. Under this method, 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.

9.  Revenue recognition

   Wholesale  revenues are recognized at the time merchandise  is
shipped to customers. Retail store revenues are recognized at the
time of sale.

10.  Licensing revenue

   The  Company  has  entered  into various  trade  name  license
agreements  that provide revenues based on minimum royalties  and
additional revenues based on percentage of defined sales. Minimum
royalty revenue is recognized on a straight-line basis over  each
period,   as  defined,  in  each  license  agreement.   Royalties
exceeding  the defined minimum amounts are recognized  as  income
during the period corresponding to the licensee's sales.

11.  Advertising costs

   The Company incurred advertising costs, including certain  in-
house marketing expenses, of $11.2 million, $7.8 million and $6.8
million  for  1999,  1998  and 1997,  respectively.  The  Company
records  advertising expense concurrent with the first  time  the
advertising takes place.

12.  Stock-based compensation

    The Company measures compensation expense for its stock-based
compensation plans using the intrinsic value method prescribed in
Accounting Principles Board Opinion No. 25 Accounting  for  Stock
Issued  to  Employees ("APB No. 25") and related Interpretations.
Statement  of  Financial Accounting Standards No. 123  Accounting
for  Stock-Based  Compensation ("SFAS  123")  requires  companies
electing  to continue using the intrinsic value method under  APB
No.  25  to  disclose the pro forma effects  or  net  income  and
earnings  per  share had the fair value of options been  expensed
(see Note H).

13.  Recent accounting pronouncements

       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
the  Company expects to adopt January 1, 2001.  The new Statement
requires  all derivatives to be recorded in 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  in the earnings and financial position  of  the
Company.

14.  Reclassifications

   Certain  amounts  included  in the  1998  and  1997  financial
statements  have been reclassified to conform with  the  year-end
1999 presentation.

Note B   -  Due from Factors and Line of Credit Facility

   The Company sells substantially all of its accounts receivable
to  a  factor,  without recourse, subject to  credit  limitations
established  by the factor for each individual account.   Certain
accounts  receivable in excess of established limits are factored
with  recourse.  Included in amounts due from factors at December
31,  1999  and 1998 are accounts receivable subject  to  recourse
totaling approximately $1,379,000 and $526,000, respectively. The
agreements with the factors provide for payment of a service  fee
on receivables sold.

   At  December 31, 1999 and 1998, the balance due from  factors,
which  includes  chargebacks  due  from  customers,  is  net   of
allowances  for  returns,  discounts,  and  other  deductions  of
approximately $8,357,000 and $3,300,000, respectively.

   The  Company  has entered into a Line of Credit Facility  (the
"Facility")  that, as amended, allows for uncommitted borrowings,
letter  of credits and banker's acceptances subject to individual
maximums and in the aggregate, an amount not to exceed the lesser
of  $25,000,000  or  a "Borrowing Base." The  Borrowing  Base  is
calculated  on  a  specified percentage of eligible  amounts  due
under  factoring  arrangements,  eligible  non-factored  accounts
receivable,   and  eligible  inventory.  Borrowings   under   the
revolving  loan portion of the Facility ("Advances") are  due  on
demand. The Company may pay down and re-borrow at will under  the
Facility.  Advances  bear  interest at the  Alternate  Base  Rate
(defined as the higher of the Prime Rate or the Federal Funds  in
effect  at borrowing date plus 1/2 of 1%) or the Note Rate (which
will  be agreed upon between the lender and the Company).   There
were no outstanding advances under this agreement at December 31,
1999  or  1998.  Amounts available under the Facility at December
31,  1999  were  reduced by $2,989,000 to  $22,011,000  for  open
letters of credit.

Note C  -  Property and Equipment

   In  connection with the line of credit, the Company has agreed
to  eliminate all the outstanding advances under the Facility for
at  least  30  consecutive days during  each  calendar  year.  In
addition,  borrowings  under the line of credit  are  secured  by
certain assets of the Company.

     Property and equipment consist of the following:

                                                       December 31,
                                                    1999         1998
Property and equipment-at cost:
Furniture and fixtures                          $ 9,640,000  $ 7,817,000
Machinery and equipment                           5,910,000    4,731,000
Leasehold improvements                           14,918,000   10,828,000
Leased equipment under capital lease                967,000      967,000
                                                -----------  -----------
                                                 31,435,000   24,343,000
Less accumulated depreciation and amortization   12,004,000    8,172,000
                                                -----------  -----------
Net property and equipment                      $19,431,000  $16,171,000
                                                ===========  ===========

Note D  -  Accrued Expenses and Other Liabilities

   Accrued expenses and other current liabilities consist of  the
following:

                                                        December 31,
                                                    1999          1998

Rent                                            $   457,000  $   315,000
Compensation                                      6,010,000    2,792,000
Customer credits                                    671,000      414,000
Deferred licensing income                           530,000      188,000
Other                                             2,704,000      925,000
                                                -----------  -----------
                                                $10,372,000  $ 4,634,000
                                                ===========  ===========

Note E  -  Segment Reporting

  Kenneth  Cole Productions, Inc. has three reportable  segments:
Wholesale, Consumer Direct, and Licensing.  The wholesale segment
designs  and sources a broad range of fashion footwear,  handbags
and  accessories and markets its products for sale to  more  than
3,700  department  and  specialty  store  locations  and  to  the
Company's  consumer direct segment.  The consumer direct  segment
markets  the  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
price  retail  stores,  outlet  stores,  e-commerce  (at  website
address   www.kennethcole.com   and   www.kc-reaction.com)    and
catalogs.   The  licensing segment, through third party  licensee
agreements, has evolved the Company from a footwear resource to a
diverse lifestyle brand competing effectively in about 30 apparel
and  accessories categories for both men and women.  The  Company
maintains control over quality and image and allows licensees  to
sell  to  the  same  channels of distribution  as  those  of  the
Company's wholesale division.  The Company earns royalties on the
licensee's sales of branded product.

  The  Company  evaluates  performance  and  allocates  resources
based on profit or loss from each segment.  The wholesale segment
is  evaluated on income from operations before income taxes.  The
consumer  direct  division is evaluated on profit  or  loss  from
operations  before  unallocated  corporate  overhead  and  income
taxes.   The  licensee division is evaluated based  on  royalties
earned and pretax segment profit. The accounting policies of  the
reportable  segments  are  the same as  those  described  in  the
summary  of significant accounting policies.  Intersegment  sales
between  the  wholesale and consumer direct divisions  include  a
markup, which is eliminated in consolidation.

  The  Company's  reportable segments  are  business  units  that
offer   products  to  overlapping  consumers  through   different
channels of distribution.  Each segment is managed separately and
planning,  implementation and results are reviewed internally  by
the executive management committee.

     Financial information of the Company's reportable segments
is as follows:
<TABLE>
<CAPTION>
                                               Consumer
                                  Wholesale     Direct     Licensing     Totals
<S>                               <C>          <C>         <C>        <C>
Year Ended December 31, 1999
Revenues                           $185,553     $109,800    $ 14,955   $310,308
Intersegment revenues                23,559                              23,559
Interest income, net                  1,280                               1,280
Depreciation expense                  1,690        2,999           9      4,698
Segment income before
  provision for income taxes         23,799       19,120      12,266     55,185
Segment assets                      143,552       32,415       2,720    178,687
Expenditures for long-lived assets    1,269        6,688           1      7,958

Year Ended December 31, 1998
Revenues                           $151,402     $ 68,379    $  8,357   $228,138
Intersegment revenues                18,679                              18,679
Interest income, net                    404                                 404
Depreciation expense                  1,072        1,715           4      2,791
Segment income before
  provision for income taxes         20,880        7,327       6,936     35,143
Segment assets                       69,513       26,798       1,690     98,001
Expenditures for long-lived assets    1,803        4,923          25      6,751

Year Ended December 31, 1997
Revenues                           $135,296     $ 49,982    $  6,028   $191,306
Intersegment revenues                14,682                              14,682
Interest expense, net                  (202)                               (202)
Depreciation expense                    791        1,161           1      1,953
Segment income before
  provision for income taxes         15,016        6,929       4,944     26,889
Segment assets                       58,219       19,309       1,253     78,781
Expenditures for long-lived assets    1,479        3,346           7      4,832
</TABLE>


The reconciliation of the Company's reportable segment revenues,
profit and loss, and assets are as follows:
<TABLE>
<CAPTION>
                                                 1999        1998        1997
<S>                                          <C>          <C>         <C>
Revenues
Revenues for reportable segments              $310,308     $228,138    $191,306
Intersegment revenues for reportable segments   23,559       18,679      14,682
Elimination of intersegment revenues           (23,559)     (18,679)    (14,682)
                                              --------     --------    --------
  Total consolidated revenues                 $310,308     $228,138    $191,306
                                              ========     ========    ========
Income
Total profit for reportable segments          $ 55,185     $ 35,143    $ 26,889
Elimination of intersegment profit              (7,808)      (4,914)     (3,956)
Unallocated corporate overhead                  (5,481)      (3,235)     (2,342)
                                              --------     --------    --------
  Total income before provision for
     income taxes                             $ 41,896     $ 26,994    $ 20,591
                                              ========     ========    ========
Assets
Total assets for reportable segments          $178,687     $ 98,001    $ 78,781
Elimination of inventory profit in
 consolidation                                  (1,828)      (1,321)     (1,253)
                                              --------     --------    --------
  Total consolidated assets                   $176,859     $ 96,680    $ 77,528
                                              ========     ========    ========
</TABLE>
  Revenues from international customers are less than two percent
of the Company's consolidated revenues.


Note F  -  Foreign Currency Transactions

  The Company routinely enters into forward exchange contracts in
anticipation  of  future  purchases of inventory  denominated  in
foreign currencies.  These forward exchange contracts are used to
reduce  the  Company's exposure to changes  in  foreign  exchange
rates and are not held for the purpose of trading or speculation.
The  Company  had  forward exchange contracts of $10,500,000  and
$6,600,000 at December 31, 1999 and 1998, respectively to protect
the  purchase price of merchandise under such commitments.  Gains
and  losses  on  forward  exchange  contracts  are  deferred  and
accounted  for  as  part  of  the  purchase  price  of   imported
merchandise.   At  December 31, 1999, forward exchange  contracts
have  maturity  dates through May 2000.  The unrealized  loss  on
these forward exchange contracts is approximately $272,000.

Note G   -  Income Taxes

  Significant items comprising the Company's deferred tax assets
and liabilities are as follows:


                                                       December  31,

                                                    1999           1998
Deferred tax assets:
 Inventory allowances and capitalization        $  950,000     $  562,000
 Allowance for doubtful accounts and
   sales allowances                                608,000         75,000
 Deferred rent                                   1,091,000        304,000
 Deferred compensation                           2,414,000      1,441,000
 Other                                             163,000         40,000
                                                ----------     ----------
                                                 5,226,000      2,422,000
                                                ----------     ----------
Deferred tax liabilities:
  Depreciation                                  (1,027,000)      (778,000)
  Undistributed foreign earnings                  (949,000)      (523,000)
                                                ----------     ----------
                                                (1,976,000)    (1,301,000)
                                                ----------     ----------
Net deferred tax assets                         $3,250,000     $1,121,000
                                                ==========     ==========

   The  provision  (benefits) for income taxes  consists  of  the
following:

                                          December 31,
                                  1999        1998         1997
Current:
  Federal                  $ 16,202,000   $  9,249,000  $  6,385,000
  State and local             2,810,000      1,750,000     1,628,000
  Foreign                        85,000         37,000        24,000
                           ------------   ------------  ------------
                             19,097,000     11,036,000     8,037,000
Deferred:
  Federal                    (1,840,000)      (330,000)      133,000
  State and local              (289,000)       (43,000)       19,000
                           ------------   ------------  ------------
                             (2,129,000)      (373,000)      152,000
                           ------------   ------------  ------------
                           $ 16,968,000   $ 10,663,000  $  8,189,000
                           ============   ============  ============
   The  reconciliation of income tax computed at the U.S. federal
statutory  tax  rate to the effective income tax rate  for  1999,
1998 and 1997 is as follows:
                                                    1999      1998     1997

Federal income tax at statutory rate                35.0%     35.0%     35.0%
State and local taxes, net of federal tax benefit    5.5       4.5       5.0
                                                    -----     -----     -----
                                                    40.5%     39.5%     40.0%
                                                    =====     =====     =====
Note H  -  Stock Options Plans and Grants

1.   1994 stock option plan

   The Company's 1994 Incentive Stock Option Plan, as amended  on
May 29, 1997, authorizes the grant of options to employees for up
to  3,000,000  shares  of the Company's  common  stock.   Certain
options  granted under the Plan vest in one-third  increments  in
each  of the first, second and third years following the date  of
grant, while certain other options vest over five years.  Options
granted   have  10-year  terms.   Non-employee  Director  options
granted  have 10 year terms and vest 50% on the first anniversary
of  the date of grant and become fully exercisable at the end  of
two years.

   The  Company  has  elected to continue  to  follow  Accounting
Principles  Board Opinion No. 25, in accounting for its  employee
stock  options.   Under APB 25, when the exercise  price  of  the
Company's employee stock options equals the market price  of  the
underlying stock on the date of grant, no compensation
expense  is  recognized.  Had compensation  cost  for  the  stock
options  been  determined based on the fair value  at  the  grant
dates  for awards under the plan, consistent with the alternative
method  set  forth  under SFAS 123, net income and  earnings  per
share  would  have been reduced by approximately  $1,136,000  and
$.06, $643,000 and $.03, and $441,000 and $.02, in 1999, 1998 and
1997, respectively.

   The  effects of applying SFAS 123 on this pro forma disclosure
may not be indicative of future results.  SFAS 123 does not apply
to  grants  prior to 1995, and additional awards in future  years
may be granted.

   Pro  forma  information regarding net income and earnings  per
share is required by Statement 123 and has been determined as  if
the  Company  had accounted for its employee stock options  under
the  fair  value  method of that Statement.  The fair  value  for
these  options was estimated at the date of grant using a  Black-
Scholes  option pricing model with the following weighted-average
assumptions  for  1999,  1998, and 1997, respectively:  risk-free
interest  rate  of   5.55%, 5.25% and 5.50%; 0% dividend  yields;
expected  volatility  factors of   48.5%,  54.2%  and  34.6%  and
expected  lives  of 4.7, 5.6 and 5.8 years.  The weighted-average
fair  value of options granted during 1999, 1998, and  1997  were
$13.47, $9.55 and  $6.63.

   The Black-Scholes option valuation model was developed for use
in  estimating  the fair value of traded options, which  have  no
vesting  restrictions and are fully transferable.   In  addition,
option  valuation  models require the input of highly  subjective
assumptions   including  the  expected  stock  price  volatility.
Because the Company's employee stock options have characteristics
significantly different from those of traded options, and because
changes in the subjective input assumptions can materially affect
the  fair  value estimate, in management's opinion, the  existing
models  do  not necessarily provide a reliable single measure  of
the fair value of its employee stock options.

   The  following table summarizes all stock option  transactions
from December 31, 1996 through December 31, 1999.
<TABLE>
<CAPTION>
                                                       Weighted-Average
                                           Shares       Exercise Price
<S>                                      <C>              <C>
 Outstanding at December 31, 1996         1,141,988
 Granted                                    488,588        $10.40
 Exercised                                  (85,472)       $ 4.63
 Forfeited                                 (112,284)       $ 9.36
                                          ----------
 Outstanding at December 31, 1997         1,432,820

 Granted                                    503,550        $11.60
 Exercised                                 (249,881)       $ 5.70
 Forfeited                                 (148,332)       $ 8.49
                                          ----------
 Outstanding at December 31, 1998         1,538,157

 Granted                                    431,400        $18.93
 Exercised                                 (143,511)       $ 8.36
 Forfeited                                  (95,348)       $10.19
                                          ----------
 Outstanding at December 31, 1999         1,730,698
                                          ==========
</TABLE>
      The   following  table  summarizes  information  concerning
currently  outstanding and exercisable stock options at  December
31, 1999:
<TABLE>
<CAPTION>
                 Outstanding Stock Options       Exercisable Stock Options

                                Weighted
                                Average     Weighted                 Weighted
                                Remaining    Average                  Average
     Range of     Outstanding  Contractual  Exercise   Exercisable   Exercise
  Exercise Prices   Shares        Life        Price      Shares        Price
<S>               <C>          <C>          <C>        <C>           <C>
 $ 4.00 to $ 8.00  390,727      4.86 years   $ 5.85     238,928       $ 5.38
 $ 8.01 to $16.00  912,321      7.43 years   $11.23     301,986       $10.99
 $16.01 to $25.00  427,650      9.34 years   $18.93        0          $ 0.00
</TABLE>

2.    Stock option grants

   In 1994, the Board of Directors granted non-transferable stock
options to an officer of the Company, for the purchase of 334,425
shares  of  Class A Common Stock at an exercise price of  $1.4583
per  share.   In 1999, no options were exercised and at  December
31, 1999, 180,000 options were outstanding and exercisable.


Note I  -  Benefit Plans

1.   401(k) Plan

   The  Company's 401(k) profit-sharing plan covers all non-union
employees,  subject to certain minimum age and length of  service
requirements   who   are   permitted  to   contribute   specified
percentages  of their salary up to the maximum permitted  by  the
Internal  Revenue  Service. The Company is obligated  to  make  a
matching  contribution  and may make an additional  discretionary
contribution, as defined. Contributions to the plan for the years
ended  December  31,  1999,  1998  and  1997  were  approximately
$120,000, $89,000 and $71,000, respectively.

2.   Deferred compensation plan

    The Kenneth Cole Productions, Inc. Deferred Compensation Plan
is an unfunded non-qualified plan maintained primarily to provide
deferred  compensation  benefits for a select  group  of  "highly
compensated employees."  The Company accounts for the investments
in  the  deferred compensation plan in accordance with SFAS  115,
"Accounting   for   Certain  Investments  in  Debt   and   Equity
Securities,"  and  such  investments  have  been  classified   as
trading.

Note J  -  Commitments and Contingencies

1.  Capital lease

   Included  in  property  and equipment are  assets  held  under
capital  lease  of  $967,000  less  accumulated  amortization  of
$242,000.   At  December 31, 1999, future minimum lease  payments
consist of the following:

      2000                                                $235,000
      2001                                                 235,000
      2002                                                 235,000
      2003                                                 177,000
      2004                                                       0
                                                          --------
      Total minimum lease payments                        $882,000
      Less amounts representing interest                  (124,000)
                                                          --------
      Present value of minimum lease payments              758,000
      Less current maturities                             (181,000)
                                                          --------
      Capital lease obligation, less current maturities   $577,000
                                                          ========

2.  Operating leases

   The  Company  leases office, retail, and warehouse  facilities
under non-cancelable operating leases between 5 and 20 years with
options to renew at varying terms.  Future minimum lease payments
for  non-cancelable leases with initial terms of one year or more
consisted of the following at December 31, 1999:

      2000                                           $ 11,833,000
      2001                                             15,808,000
      2002                                             15,602,000
      2003                                             15,377,000
      2004                                             14,933,000
      Thereafter                                       99,264,000
                                                     ------------
      Total minimum cash payments                    $172,817,000
                                                     ============
In  addition, certain of these leases contain rent escalation and
additional percentage rent payments to be made.

   Rent  expense for the years ended December 31, 1999, 1998  and
1997 was $13,530,000, $9,313,000 and $6,903,000, respectively.

3. Letters of credit

   At  December  31, 1999 and 1998, the Company was  contingently
liable  for  approximately  $2,589,000  and  $1,169,000  of  open
letters  of  credit, respectively. In addition, at  December  31,
1999   and   1998,  the  Company  was  contingently  liable   for
approximately $400,000 of standby letters of credit.

4.  Concentrations

   In  the normal course of business, the Company sells to  major
department stores and specialty retailers and believes  that  its
broad  customer  base  will mitigate the  impact  that  financial
difficulties  of any such retailers might have on  the  Company's
operations. In 1999 and 1998, the Company had no customer account
for  more  than 10% of net sales.  The Company had two  customers
that accounted for 12.4% and 10.0% of net sales in 1997.

  The Company sources each of its product lines separately, based
on  the individual design, styling and quality specifications  of
such  products.   The  Company  primarily  sources  its  products
directly  or  indirectly through manufacturers in  Italy,  Spain,
Brazil,  India, China and Korea.  The Company attempts  to  limit
the   concentration   with   any  one   manufacturer.    However,
approximately  58% and 46% of the dollar value of  total  handbag
purchases  by  the Company were produced by one  manufacturer  in
China  utilizing  many different factories,  in  1999  and  1998,
respectively.  Approximately  43% and 58% of Kenneth  Cole  men's
footwear  purchases were from one manufacturer in Italy utilizing
many  different  factories, during 1999 and  1998,  respectively.
The  Company  believes  it has alternative manufacturing  sources
available  to meet its current and future production requirements
in   the   event  the  Company  is  required  to  change  current
manufacturers or current manufacturers are unavailable to fulfill
the Company's production needs.

5.  Other

   The  Company, from time to time, is a party to litigation that
arises  in  the  normal course of its business operations.    The
Company  presently  is  not a party to any such  litigation  that
would  have  a  material  adverse  effect  on  its  business   or
operations.

Note K  - Shareholders' Equity

1.  Common stock

   Class A Common Shareholders are entitled to one vote for  each
share  held  of  record,  and  Class B  Common  Shareholders  are
entitled  to ten votes for each share held of record. Each  share
of Class B Common Stock is convertible into one share of Class  A
Common Stock at the option of the Class B Shareholder.  The Class
A   Common  Shareholders  vote  together  with   Class  B  Common
Shareholders  on  all  matters subject to  shareholder  approval,
except Class A Common Shareholders vote separately as a class  to
elect  25%  of the Board of Directors of the Company.  Shares  of
neither  class  of  common  stock have preemptive  or  cumulative
voting rights.

2.  Preferred stock

   The  Company's  Certificate  of Incorporation  authorizes  the
issuance  of  1,000,000 shares of preferred stock. The  preferred
stock  may be issued from time to time as determined by the Board
of  Directors of the Company, without shareholder approval.  Such
preferred  stock  may  be issued in such  series  and  with  such
preferences,   conversion  or  other   rights,   voting   powers,
restrictions,  limitations  as  to dividends,  qualifications  or
other  provisions,  as may be fixed by the  Board  of  Directors.
As  discussed in note A (2), the  Company  issued, in a form of a
dividend, 28,927 shares of Series A Convertible  Preferred  Stock
on  March  27,  2000.   The  financial  statements  reflect  this
dividend.

3.  Common Stock repurchase

   On  August  13,  1999, the Board of Directors of  the  Company
authorized  management  to repurchase,  from  time  to  time,  an
additional  1,000,000 shares up to an aggregate 1,500,000  shares
of  the Company's Class A Common Stock.  As of December 31, 1999,
723,750  shares  were  repurchased  in  the  open  market  at  an
aggregate price of $9,355,000 and have been recorded as  treasury
stock.

Note L   -  Licensing Agreement

  On July 1, 1999, the Company and Liz Claiborne Inc. (along with
its  subsidiaries  and affiliates collectively  "Liz  Claiborne")
entered  into  a  multi-brand initiative to launch  Kenneth  Cole
Productions,  Inc.  into  the women's  apparel  market  under  an
exclusive  womenswear license agreement.  The  agreement  granted
Liz  Claiborne rights to manufacture, distribute and sell women's
sportswear under the licensed marks of Kenneth Cole, Kenneth Cole
New  York,  Reaction Kenneth Cole and Unlisted.com.  The  initial
term  is through December 31, 2004, with options to renew through
December 31, 2019 based upon Liz Claiborne reaching certain sales
thresholds.  During these periods, Liz Claiborne is obligated  to
pay the Company a percentage of net sales based upon the terms of
the  agreement.  Simultaneously with the licensing agreement, Liz
Claiborne   purchased  1.5  million  shares   of   Kenneth   Cole
Productions, Inc. Class A Common Stock par value $.01 per
share  at  a  price of $19.33 (adjusted to give  effect  for  the
Company's  three-for-two stock split), the fair market  value  at
the date of the agreement.

Note M  -  Related Party Transaction

  In December 1999, the Board of Directors authorized a $500,000
contribution payable to the Kenneth Cole Foundation.

Note N  -  Quarterly Financial Data (Unaudited)
     Summarized quarterly financial data for 1999 and 1998 appear
below (in thousands, except per share data):
<TABLE>
<CAPTION>
                             First    Second    Third     Fourth
                            Quarter   Quarter   Quarter   Quarter
<S>                        <C>       <C>       <C>       <C>
1999
Net sales                   $ 63,533  $ 62,269  $ 81,327  $ 88,224
Licensing revenue              2,510     3,048     4,226     5,171
Net revenues                  66,043    65,317    85,553    93,395
Gross profit                  29,447    28,669    39,259    44,077
Operating income               7,851     5,846    13,233    13,686
Net income                     4,730     3,571     8,067     8,560
Earnings per share basic      $  .24    $  .18    $  .40    $  .41
Earnings per share diluted    $  .23    $  .17    $  .38    $  .39

1998
Net sales                   $ 52,029  $ 48,331  $ 62,010  $ 57,411
Licensing revenue              1,656     1,791     2,294     2,616
Net revenues                  53,685    50,122    64,304    60,027
Gross profit                  23,585    21,165    27,792    26,193
Operating income               6,659     4,008     9,377     6,546
Net income                     4,093     2,501     5,731     4,006
Earnings per share basic      $  .21    $  .13    $  .29    $  .21
Earnings per share diluted    $  .20    $  .12    $  .28    $  .20
</TABLE>

Note O  -  Subsequent Event

   On  February  14,  2000,  the Board of  Directors  authorized,
subject to shareholder approval, the establishment of a qualified
Employee  Stock Purchase Plan ("ESPP"), the terms of which  allow
for  qualified  employees  (as defined)  to  participate  in  the
purchase  of  designated shares of the Company's Class  A  Common
Stock  at a price equal to 85% of the lower of the closing  price
at  the beginning or end of each quarterly stock purchase period.
The  ESPP  is expected to commence during the second  quarter  of
2000.

   On  March  7,  2000,  the Company filed Form  S-8  registering
150,000 shares of Class A Common Stock for the ESPP.
<PAGE>
                           Signatures

   Pursuant  to  the requirements of Section 13 or 15(d)  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.

                                   By  /s/ KENNETH D.COLE
                                        Kenneth D. Cole
                                   President and Chief Executive Officer

                                   Date: March 28, 2000



Pursuant  to the requirements of the Securities Exchange  Act  of
1934,  this  report has been signed by the following  persons  on
behalf  of the Registrant and in the capacities and on the  dates
indicated.


     Signature               Title                               Date

/S/ KENNETH D. COLE     President, Chief Executive           March 28, 2000
  Kenneth D. Cole       Officer and Director


/S/ PAUL BLUM           Executive Vice President             March 28, 2000
  Paul Blum             Chief Operating Officer and Director

/S/ STANLEY A. MAYER    Executive Vice President,            March 28, 2000
  Stanley A. Mayer      Chief Financial Officer, Treasure and Director

/S/ DAVID P. EDELMAN    Senior Vice President Finance        March 28, 2000
  David P. Edelman     (Principal Accounting Officer)

/S/ ROBERT C. GRAYSON   Director                             March 28, 2000
  Robert  C. Grayson

/S/ DENIS F. KELLY      Director                             March 28, 2000
  Denis F. Kelly

/S/ JEFFREY G. LYNN     Director                             March 28, 2000
  Jeffrey G. Lynn
<PAGE>

                         Kenneth Productions, Inc.
                               Schedule II
                    Valuation and Qualifying Accounts
            For the years ended December 31, 1999, 1998, and 1997
                              (in thousands)
<TABLE>
<CAPTION>
                                Balance at   Charged to               Balance
                                Beginning    Costs and                 at End
Description                     of Period     Expenses   Deductions   of Period
<S>                            <C>          <C>          <C>        <C>
Year ended December 31, 1999
Allowance for doubtful accounts $  (125,000) $(1,344,000) $ 915,000 $  (554,000)
Reserve for returns and
  sales allowances               (3,300,000)  (5,057,000)            (8,357,000)
                                ------------ ------------ --------- ------------
                                $(3,425,000) $(6,401,000) $ 915,000 $(8,911,000)
                                ============ ============ ========= ============
Year ended December 31, 1998
Allowance for doubtful accounts $   (80,000) $  (197,000) $ 152,000 $  (125,000)
Reserve for returns and
  sales allowances               (2,900,000)    (400,000)            (3,300,000)
                                ------------ ------------ --------- ------------
                                 (2,980,000)    (597,000)   152,000  (3,425,000)
                                ============ ============ ========= ============
Year ended December 31, 1997
Allowance for doubtful accounts $   (65,000) $  (157,000) $ 142,000 $   (80,000)
Reserve for returns and
  sales allowances               (2,200,000)    (700,000)            (2,900,000)
                                ------------ ------------ --------- ------------
                                $(2,265,000) $  (857,000) $ 142,000 $(2,980,000)
                                ============ ============ ========= ============
</TABLE>
<PAGE>
                 Kenneth Cole Productions, Inc.
                          Exhibit 21.01
List of Subsidiaries                         State of Incorporation

Kenneth Cole Productions, Inc.                      New York
Kenneth Cole Financial Services, Inc.               New Jersey
Cole Carnegie, Inc.                                 New York
Kenth Ltd.                                          Hong Kong
Kenneth Cole Catalog, Inc.                          Virginia
Kenneth Cole Services, Inc.                         Delaware
K.C.P.L., Inc.                                      Delaware
Cole South Beach, Inc.                              Florida
Cole Somerset, Inc.                                 Michigan
Kenneth Cole Gilroy, Inc.                           California
Cole NorthPark, Inc.                                Texas
Cole Phipps, Inc.                                   Georgia
Cole Westchester, Inc.                              New York
Cole Tyson, Inc.                                    Virginia
Cole Napa, Inc.                                     California
Cole Destin, Inc.                                   Florida
Cole Prussia, Inc.                                  Pennsylvania
Cole Pentagon, Inc.                                 Virginia
Cole Sawgrass, Inc.                                 Florida
Kenneth Cole, Inc. (Secaucus Outlet)                New York
Cole Short Hills, Inc.                              New Jersey
Cole Cabazon, Inc.                                  California
Cole Copley, Inc.                                   Massachusetts
Cole Stanford, Inc.                                 California
Cole Roosevelt, Inc.                                New York
Cole Newbury, Inc.                                  Massachusetts
Cole Waikele, Inc. (Hawaii)                         New York
Cole Reading Outlet, Inc.                           Pennsylvania
Cole Broadway, Inc.                                 New York
Cole Amsterdam, B.V.                                Amsterdam
Cole Amsterdam, Inc.                                Delaware
Cole Clinton, Inc.                                  Connecticut
Cole Boca, Inc.                                     Florida
Cole Century City, Inc.                             California
Cole Georgetown, Inc.                               District of Columbia
Cole Dadeland, Inc.                                 Florida
Cole Aspen, Inc.                                    Delaware
Cole Houston, Inc.                                  Delaware
Cole Fashion Valley, Inc.                           Delaware
Cole Chestnut, Inc.                                 Delaware
Cole Oakbrook, Inc.                                 Delaware
Cole Santa Monica, Inc.                             Delaware
Cole Garden State, Inc.                             Delaware
Cole Grand Central, Inc.                            Delaware
Cole Riverhead, Inc.                                Delaware
Cole Las Vegas, Inc.                                Delaware
Cole Carlsbad, Inc.                                 Delaware
Cole Orlando, Inc.                                  Delaware
Cole Forum, Inc.                                    Delaware
<PAGE>
                 Kenneth Cole Productions, Inc.
                   Exhibit 21.01 (continued)
List of Subsidiaries                         State of Incorporation

Cole Grant, Inc.                                    Delaware
Cole Honolulu, Inc.                                 Delaware
Cole Scottsdale, Inc.                               Delaware
Cole Leesburg, Inc.                                 Delaware(Formerly Cole
                                                    Perimeter, Inc.)
Cole Michigan Avenue, Inc.                          Delaware(Formerly Cole
                                                    South Street Seaport, Inc.)
Cole Franklin, Inc.                                 Delaware
Kenneth Cole Woodbury, Inc.                         Delaware
Cole SFC, LLC                                       Delaware
Cole New Orleans, Inc.                              Delaware
Cole Walnut Street, Inc.                            Delaware
Cole Venetian, LLC                                  Delaware
Riviera Holding, LLC (Columbus Lease)               Delaware
Cole Viejo, LLC                                     Delaware
Cole Jersey Gardens, LLC                            Delaware
Kenneth Cole Katy, LLC                              Delaware
Cole Galleria, Inc.                                 Delaware
Cole Camarillo, LLC                                 Delaware
Cole Tempe, LLC                                     Delaware
Cole Dawsonville, Inc.                              Delaware
Cole Pike, Inc.                                     Delaware
Cole 57th Street, LLC                               Delaware
Cole West Palm Beach, LLC                           Delaware
Cole 610 Fifth Avenue, LLC                          Delaware



<PAGE>
                                        Exhibit 23.01



                  CONSENT OF ERNST & YOUNG LLP


We  consent  to  the incorporation by reference  in  Registration
Statement (Form S-8 No. 33-92094) pertaining to the Kenneth  Cole
Productions,   Inc.  1994  Stock  Option  Plan  and  Registration
Statement  (Form S-8) pertaining to the Kenneth Cole Productions,
Inc.  Employee  Stock Purchase Plan of our report dated  February
25,  2000,  with respect to the consolidated financial statements
and  schedule  of Kenneth Cole Productions, Inc., included in the
Annual  Report (Form 10-K) for the year ended December 31,  1999,
filed with the Securities and Exchange Commission.




                                   ERNST & YOUNG LLP




New York, New York
March 28, 2000



<PAGE>