Kate Spade roundup: Rally after sales pop, brand erosion a concern?

|About: Kate Spade & Company (KATE)|By:, SA News Editor

Shares of Kate Spade (KATE +7.3%) carve out a new multi-year high after a bustling Q2 report and a bump in guidance.

The retailer almost doubled up the street estimate for comp growth with its 30.4% mark.

What to watch: Some retail analysts are wary of the heavy level of markdowns and margin compression that Kate Spade had to endure to achieve its sales pop. If the brand slips out of the affordable luxury category, they note that working its way back up could be difficult.