• Yesterday, 7:03 AM
    • Bank of America MErrill Lynch advises that a buyout premium is already priced into Kate Spade (NYSE:KATE).
    • The firm downgrades Kate to Neutral from Buy and clips its price target to $20.
    • Shares of Kate are up 25.5% over the last month amid the takeover talk.
    • Previously: Cowen sets Kate Spade buyout odds at 80% (Jan. 12)
    Yesterday, 7:03 AM | 1 Comment
  • Tue, Jan. 17, 9:50 AM
    • The retail sector is taking notice of a comment made by Donald Trump in his interview with The Wall Street Journal posted late on Friday.
    • "Our companies can’t compete with them [China] now because our currency is too strong. And it’s killing us," said POTUS-elect Trump.
    • A strong U.S. dollar has been a wrecking ball to the bottom line of many U.S.-based multnationals.
    • Notable gainers include Wal-Mart (WMT +2.5%), PriceSmart (PSMT +1.8%), Target (TGT +1.4%), Nike (NKE +1.4%), Kate Spade (KATE +0.9%), Michael Kors (KORS +0.8%), Fossil (FOSL +1.7%), Coach (COH +2%), Ralph Lauren (RL +3.5%), VF Corp (VFC +1.9%), Kohl's (KSS +3.2%).
    • ETFs: IYK, PEJ, UGE, SZK.
    • The S&P Retail ETF (NYSEARCA:XRT) is up over 2%.
    Tue, Jan. 17, 9:50 AM | 17 Comments
  • Thu, Jan. 12, 9:42 AM
    • Cowen takes the price target on Kate Spade (NYSE:KATE) up to $20 from $16.
    • Analyst Oliver Chen gives a Kate buyout an 80% probability of happening, likely at a low double digit Ebitda transaction multiple.
    • Source: Bloomberg
    • Shares of Kate Spade are up 15% over the last month, largely on M&A speculation. The S&P Retail ETF is down 7% over the same period.
    Thu, Jan. 12, 9:42 AM | 8 Comments
  • Wed, Jan. 4, 5:06 PM
    • Shares of traditional department stores tumble after-hours as Macy's (NYSE:M) and Kohl's (NYSE:KSS) cut earnings estimates due to weak holiday sales (I, II); Macy's also added details on its previous announcement to close 100 stores, saying the moves will result in 10K job cuts and a $575M reduction in 2017 sales.
    • The news causes a ripple effect across the sector: JWN -5.9%, JCP -4.8%, DDS -3.4%, SHLD -2.5%, TGT -1.8%, ROST -1.5% AH.
    • Apparel and accessory companies with significant presences in big box retail also are lower: KORS -2.8%, COH -2.6%, KATE -1.1% AH.
    • ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR
    Wed, Jan. 4, 5:06 PM | 56 Comments
  • Dec. 30, 2016, 3:55 PM
    • SunTrust Robinson Humphrey thinks Kate Spade (NYSE:KATE) could draw a bid as high as $23 per share when the retailer puts itself on the sales block.
    • Analyst Pamela Quintiliano crunches the numbers on prior deals in the space to find a 10.5X EV/EBITDA is reasonable.
    • Shares of Kate Spade are up 28% for the week.
    Dec. 30, 2016, 3:55 PM | 12 Comments
  • Dec. 29, 2016, 12:47 PM
    Dec. 29, 2016, 12:47 PM
  • Dec. 28, 2016, 12:49 PM
    Dec. 28, 2016, 12:49 PM | 4 Comments
  • Dec. 28, 2016, 12:42 PM
    • Developing.
    • Shares (NYSE:KATE) had been halted for volatility and subsequently resumed as of 12:39 PM ET.
    • Update (12:50 PM ET): Trading halt reinstated at 12:42 PM ET, also on volatility, and again resumed at 12:48PM ET with shares active 18%+ higher.
    • Update (1:00 PM ET): Reportedly under pressure from activist shareholder Caerus Investors, early stage work with a bank and contact with prospective buyers, inclusive of other retailers, is suggested.
    Dec. 28, 2016, 12:42 PM | 6 Comments
  • Dec. 23, 2016, 9:20 AM
    • If there is a turnaround at Coach (NYSE:COH) it could be due in part to the work of British designer Stuart Vevers.
    • Vevers has been successful at rebranding Coach, according to W editor Stefano Tonchi. "You say Coach today and you identify not just with a bag, but with a wardrobe," he notes.
    • Trader Marc Lehman hypothesizes that Coach may consider buying Kate Spade (NYSE:KATE). It's interesting timing with Kate closing at a multi-year low of $14.02 yesterday. Kate Spade has been on the wrong side of the Trump trade due to concerns over import and sourcing policies.
    • KATE is up 1.78% in premarket action and COH is 2.19% higher.
    Dec. 23, 2016, 9:20 AM | 1 Comment
  • Dec. 8, 2016, 11:59 AM
    Dec. 8, 2016, 11:59 AM
  • Nov. 22, 2016, 9:47 AM
    • Cowen lowers its rating on Kate Spade (KATE -1.5%) to Market Perform from Outperform due to ongoing concerns over the handbag market.
    • The ratings action arrives amid a period of some turmoil for the retailer with activist investor Caerus calling on it to sell itself.
    • The new price target from Cowen on Kate is $16. Shares have traded in a 52-week range of $14.26 to $26.46.
    Nov. 22, 2016, 9:47 AM
  • Nov. 14, 2016, 10:15 AM
    • Clothing and footwear stocks are jetting higher as more analysts bump up expectations on consumer spending in Q4 and broadly forecast tax relief for the consumer goods sector (effective tax rates paid).
    • Many of the names with the sharpest moves higher today are recovering from a pre-election slump.
    • Gainers include Sequential Brands Group (SQBG +11.7%), Iconix Brand Group (ICON +5.1%), Carter's (CRI +4.6%), Vera Bradley (VRA +4.6%), Wolverine World Wide (WWW +4%), Crocs (CROX +4.3%), Caleres (CAL +4.6%), Ralph Lauren (RL +3.4%), Fossil (FOSL +5%), Perry Ellis (PERY +3%), Deckers Outdoor (DECK +3.5%), Skechers (SKX +3.2%) and Coach (COH +3.1%).
    • Kate Spade (KATE +5.9%) is also rallying, but has news of an activist investor on the prowl also factoring in.
    • Previously: Kate Spade hears from activist firm (Nov. 14)
    • Previously: Investors see upside with apparel store stocks (Nov. 14)
    Nov. 14, 2016, 10:15 AM | 11 Comments
  • Nov. 14, 2016, 8:13 AM
    • Activity firm Caerus Investors sends a stinging letter to the board Kate Spade (NYSE:KATE) asking the company to pursue a sale.
    • Snippets from the letter are posted below.
    • "We are deeply concerned about the precipitous decline in the share price of Kate Spade over the last two and a half years brought about by management’s inability to meet their own stated goals."
    • "We have become increasingly frustrated by management’s inability to achieve profit margins comparable to industry peers."
    • "EBITDA margins at Kate Spade are 400-1000bps below peers. Management has simply not delivered on stated margin targets resulting in the market doubting the prospects for the business."
    • Source: Press Release
    Nov. 14, 2016, 8:13 AM
  • Nov. 2, 2016, 2:26 PM
    • Shares of Kate Spade (KATE -9.4%) didn't receive much encouragement from the words of CEO Craig Levitt during the company's earnings call.
    • Looking at the crucial holiday season, Levitt warned of "very, very high level pricing pressure" and more gross margin contraction.
    • Kate Spade is testing lower initial pricing points, as well as dialing up promotions in order to clear merchandise.
    • KATE traded at a 52-week low of $14.65 earlier.
    • Previously: Kate Spade beats by $0.04, beats on revenue (Nov. 2)
    • Previously: Kate Spade battles through 'challenging' retail environment (Nov. 2)
    Nov. 2, 2016, 2:26 PM | 2 Comments
  • Nov. 2, 2016, 12:00 PM
    Nov. 2, 2016, 12:00 PM | 3 Comments
  • Nov. 2, 2016, 7:14 AM
    • Kate Spade (NYSE:KATE) cites a challenging retail environment and ongoing toruist headwinds as negative factors in Q3.
    • Sales in North America jumped 14% to $260M. International sales were 8% higher at $51M (+24% excluding wind-down stores).
    • Direct-to-consumer sales increased 15% during the quarter.
    • Gross profit as a percentage of sales fell 180 bps to 59.4%.
    • SG&A expenses as a percentage of sales decreased 250 bps to 54.3%
    • Store count: -5 net to 426
    • Looking ahead, Kate Spade expects full-year sales of $1.370B-$1.400B vs. $1.38B consensus and EPS of $0.63-$0.70 vs. $0.65 consensus.
    • Previously: Kate Spade beats by $0.04, beats on revenue (Nov. 2)
    • KATE +1.04% premarket to $16.50.
    Nov. 2, 2016, 7:14 AM | 2 Comments