UPDATE 2-Kenneth Cole posts Q1 loss; sees weak Q2

* Q1 loss $0.46/shr vs profit $0.04/shr last year

* Q1 rev falls 16 pct to $103.4 mln

* Q1 hurt by inventory cutbacks at major wholesalers * Sees weak Q2

May 5 (Reuters) - U.S. shoe and clothing maker Kenneth Cole Productions Inc (KCP.N) posted a first-quarter loss and forecast a weak second quarter, citing inventory cutbacks at its major wholesale partners and lower consumer spending.

"We expect continued sales and margin pressure throughout the second quarter as we work to reduce our wholesale inventory to match our sales expectations," a company executive said on a conference call with analysts.

The company, which has been cutting costs and reducing inventory to battle falling sales, also said its inventory will be in line with demand by the end of the second quarter.

Inventory at the end of the first quarter was $44.1 million compared with $45.8 million last year.

As part of an initiative to right-size its wholesale business, Kenneth Cole discontinued its "bongo" footwear license during the first quarter and will stop shipping by the end of the fourth quarter, an executive said.

Kenneth Cole, which sells its products at Macy's, Nordstrom and other department stores and at company-owned retail stores, expects a second-quarter loss of 25 cents to 30 cents a share, on revenue of $90 million to $95 million.