Kate Spade & CompanyNYSE
Kate Spade: Wall Street Hates It, But Shoppers Love It
Kate Spade & Company: Early Innings Of Long-Term Growth
Yesterday, 11:59 AM
Tue, Nov. 22, 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.
Mon, Nov. 14, 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)
Mon, Nov. 14, 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
Wed, Nov. 2, 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)
Wed, Nov. 2, 12:00 PM
Wed, Nov. 2, 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.
Wed, Nov. 2, 7:02 AM
Tue, Nov. 1, 5:30 PM
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Wed, Oct. 19, 1:17 PM
- Barron's has introduced a tracking index of stocks favored by younger consumers.
- Though the combined performance on the group of 50 stocks smashed the returns of the S&P 500 over the last five years, this year it lags slightly so far.
- As expected, the price-earnings ratio of the Barron's Next 50 Index skews higher due to the focus on longer-term millennial growth.
- Some of the companies making the initial list are Amazon (NASDAQ:AMZN), Barnes & Noble Education (NYSE:BNED), Boston Beer (NYSE:SAM), Chipotle (NYSE:CMG), Etsy (NASDAQ:ETSY), GameStop (NYSE:GME), GoPro (NASDAQ:GPRO), GrubHub (NYSE:GRUB), Kate Spade (NYSE:KATE), Live Nation (NASDAQ:LIVE), Lululemon (NASDAQ:LULU), MasterCard (NYSE:MA), Match Group (NASDAQ:MTCH), Monster Beverage (NASDAQ:MNST), Shake Shack (NYSE:SHAK), Square (NYSE:SQ), and Yelp (NYSE:YELP).
- A millennial-focused ETF launched last spring, the Global X Millennial Thematic ETF (NASDAQ:MILN), has outperformed the S&P 500 Index over its brief history.
Fri, Oct. 14, 2:54 PM
- Piper Jaffray is out with the results of its annual Taking Stock With Teens Survey. The top brands listed by the 10K teens included in the survey are posted below.
- Top clothing brands: Nike (NYSE:NKE) 29%, American Eagle Outfitters (NYSE:AEO) 9%, Forever 21 5%, Ralph Lauren (NYSE:RL) 4%, Urban Outfitters (NASDAQ:URBN) 3%.
- Top handbag brands: Michael Kors (NYSE:KORS) 34%, Kate Spade (NYSE:KATE) 19%, Coach (NYSE:COH) 10%, Louis Vuitton (OTCPK:LVMHF) 5%, Longchamp Vera Bradley (NASDAQ:VRA) 3%.
- Top footwear brands: Nike 51%, Vans (NYSE:VFC) 9%, Converse 7%, Adidas (OTCQX:ADDYY) 6%, Steven Madden (NASDAQ:SHOO) 2%.
- Top restaurant chains: Starbucks (NASDAQ:SBUX) 14%, Chipotle (NYSE:CMG) 11%, Chick-fil-A 10%, Taco Bell (NYSE:YUM) 3%, Panera Bread (NASDAQ:PNRA) 3%, McDonald's (NYSE:MCD) 3%, Olive Garden (NYSE:DRI) 3%.
- Nothing earth-shattering in the tech results, dominating teen mindspace are Snapchat (Private:CHAT), YouTube, Instagram and Netflix (NASDAQ:NFLX).
Thu, Sep. 29, 10:17 AM
- CLSA issues new ratings updates up and down the retail sector.
- Coach (COH +2%) earns a Buy rating due to sales momentum.
- Tiffany (TIF +0.8%) looks appealing with expectations set low.
- Ralph Lauren (RL +1.7%) lands at Buy with it seen as being in the early stages of a turnaround.
- Catching Outperform ratings are Signet (SIG +0.1%), Oxford Industries (OXM +0.9%), Kate Spade (KATE +1.2%), and G-III Apparel Group (GIII +1.2%).
- A lack of drivers at Michael Kors (KORS -0.6%) brings a Sell rating down from CLSA.
- The investment firm starts off coverage on Carter's (CRI -1.7%) with an Underperform rating and sets a price target of $95 on the retailer.
Tue, Sep. 13, 7:16 AM
- Wells Fargo upgrades Kate Spade (NYSE:KATE) to an Outperform rating after having the retailer lined up at Market Perform.
- The investment firm sees Kate gaining enough momentum in the second half of the year to escape the "penalty box" of investor skepticism.
- "We are raising our valuation to $23-$24 from $16-$18 based on an EV/EBITDA valuation of 9.0x 2017E EBITDA," writes analyst Ike Boruchow.
- KATE +1.58% premarket to $18.67.
Thu, Aug. 4, 12:37 PM
- Kate Spade (KATE +2.4%) is staging a minor recovery after yesterday's post-earnings wipeout.
- The retailer received some KATE)+PT+Cut+to+$22+at+Wedbush+Amid+Disappointing+Q2/11902263.html" target="_blank">support from Wedbush analyst Morry Brown who backed an Outperform rating on the stock.
- Brown thinks trends in the second half will improve for Kate Spade.
- SA contributor L&F Capital Management also likes the current valuation on Kate. The investment management group points to the forward PEG ratio which now sits below 1.
Wed, Aug. 3, 12:48 PM
Wed, Aug. 3, 12:00 PM