Kate Spade: Wall Street Hates It, But Shoppers Love It
Kate Spade & Company: Early Innings Of Long-Term Growth
Kate Spade & Company: The Crown Jewel Begins To Shine, For Investors And Bidders
Helix Investment Research • 12 Comments
Helix Investment Research • 12 Comments
Tue, Jul. 12, 11:26 AM
- William Blair initiates coverage on Kate Spade (KATE +2.9%) with an Outperform rating.
- Wall Street continues to take a very favorable view on Kate Spade's upside. Cowen and Company, Citigroup, and Buckingham Research all backed up bull calls on the retailer in the last two months.
- On Seeking Alpha, the Kate debate this year has focused on valuation vs. growth potential.
Thu, Jun. 2, 12:00 PM
Wed, May 11, 10:04 AM
- A devastating F/X-ravaged report turned in by Fossil (FOSL -31.3%) and a general sense that U.S. consumer spending on apparel is weak (L Brands, Gap, Macy's) is taking a toll on some high-end retailers.
- Michael Kors (KORS -10.8%), Movado (MOV -7.6%), G-III Apparel (GIII -9.9%), Kate Spade (KATE -2.9%), PVH (PVH -5.6%), Ralph Lauren (RL -5.8%), Coach (COH -3.8%), and Luxottica (LUX -1.9%) are all spinning lower with anxiety over sales trends rising.
- Previously: Fossil crushed after sales and margins shrink (May 10)
- Previously: Specialty retail not looking so special to investors (May 11)
Fri, Apr. 8, 10:17 AM
- Apparel stocks are getting hammered after Gap's latest monthly sales dud creates a new ripple of worry.
- There's a little bit of a failed feedback loop going on in the sector as teenagers/young adults skip mall visits to spend on other categories while sellers try to innovate their way out of the box. That innovation is leading to excess inventory which in turn leads to more painful discounting
- Decliners include Lululemon (LULU -1.7%), Kate Spade (KATE -1.4%), Deckers Outdoor (DECK -2.5%), Coach (COH -1.6%), Michael Kors (KORS -2.1%), Columbia Sportswear (COLM -1.8%), Carter's (CRI -1.8%), Hanesbrands (HBI -1.3%), Ascena Retail (ASNA -3.9%), Nordstrom (JWN -3.4%), Chico's FAS (CHS -4.2%), Abercrombie & Fitch (ANF -4%), Urban Outfitters (URBN -2.6%), L Brands (LB -3%), Express (EXPR -2.4%), Guess (GES -2.9%), Tailored Brands (TLRD -1.9%) and Zumiez (ZUMZ -2.8%).
- Now read Sell Your Apparel Stocks
Tue, Mar. 1, 8:19 AM
- Kate Spade (NYSE:KATE) reports comparable direct-to-consumer sales rose 14% in Q4.
- Segment revenue: Kate Spade North America:$371.31M (+13.6%); Kate Spade International: $52.1M (-13.3%), Adelington Design Group: $5.55M (-52.8%).
- Gross profit rate improved 240 bps to 60.2%.
- Operating margin rate expanded 540 bps to 17.2%.
- SG&A expenses rate declined 260 bps to 43%.
- FY2016 Guidance: Net sales: $1.385B to $1.410B; Adjusted EBITDA: $257M to $282M; Diluted EPS: $0.70 to $0.80; DTC comparable sales growth: low to mid-teens ; Capex: ~$65M to $70M; New store openings: 40 to 45.
- KATE +1.82% premarket.
Fri, Feb. 19, 11:53 AM
- The apparel sector is on shaky ground after weak earnings reports from VF Corp. and Nordstrom set the tone.
- Weather and F/X dinged VF Corp. more than expected, while Nordstrom was whacked by promotions and a higher mix of e-commerce.
- Notable decliners include Carter's (CRI -3.9%), PVh Corp. (PVH -2.7%), Kate Spade (KATE -2.8%), Gildan Activewear (GIL -2.1%), Hanesbrands (HBI -3.5%), Gap (GPS -1.1%), Lululemon (LULU -1.1%), Urban Outfitters (URBN -2%), Genesco (GCO -2%), and Sequential Brands Group (SQBG -1.1%).
Tue, Feb. 2, 10:21 AM
- Strength shown by Michael Kors (KORS +16.1%) in digital channels, Japan, and across much of Europe isn't going unnoticed in the apparel sector.
- G-III Apparel (GIII 1.4%), PVH Corp (PVH +3.2%), Vera Bradley (VRA +5%), Fossil (FOSL +1.8%), Lululemon (LULU +2.5%), Kate Spade (KATE +1.1%), and Movado (MOV +0.5%) are all higher on a day broad market averages are wilting.
- Previously: Michael Kors Holdings beats by $0.13, beats on revenue (Feb. 2)
- Previously: Michael Kors soars after earnings shine (Feb. 2)
Tue, Jan. 26, 3:04 PM
- Coach (COH +10.3%) is up 10% after a penny beat over consensus Q4 earnings estimates.
- Movado (MOV +5.1%), Kate Spade (KATE +2.9%), Michael Kors (KORS +2.9%), and Vera Bradley (VRA +1.4%) are all higher after the Coach print, although some traders are expressing caution.
- Coach's sales growth was driven largely by the recently-acquired Stuart Weitzman brand, not handbags, and the company warned on the level of promotional activity with handbag sellers.
- Previously: Coach beats by $0.01, misses on revenue (Jan. 26 2016)
- Previously: Coach higher after results and guidance satisfy investors (Jan. 26 2016)
Nov. 23, 2015, 12:29 PM
- High-end global retail stocks are on the move as some analysts see the sector as oversold.
- A positive step forward for trade talks between China and the U.S. may also be contributing to the mini-rally.
- Gainers: Ralph Lauren (RL +1.8%), Guess (GES +3.3%), Coach (COH +2%), Michael Kors (KORS +1.8%), Vera Bradley (VRA +1.6%), Kate Spade (KATE +2.6%), PVH Corp (PVH +1.6%).
Nov. 20, 2015, 11:47 AM
- The S&P Retail ETF (NYSEARCA:XRT) is up 1.9% with apparel and footwear stocks doing much of the heavy lifting.
- A vibrant rally in sports stocks was sparked by earnings reports and Nike. Iconix Brand (ICON +2.5%), G-III Apparel (GIII +3%), DSW (DSW +3.7%), Finish Line (FINL +3.1%), Caleres (CAL +2.2%), Genesco (GCO +3.5%), and Shoe Carnival (SCVL +1.7%) join the list reported on earlier.
- Luxury names are on the move with Kate Spade (KATE +2%), Fossil (FOSL +2.9%), Coach (COH +1.4%), and Movado (MOV +2.7%) higher.
- The beat-up mall retailer group is also recovering after results from Gap (GPS +6%) and Abercrombie & Fitch (ANF +19.4%) topped worst-case scenarios. American Eagle Outfitters (AEO +2.3%), Guess (GES +4.6%), and Pacific Sunwear (PSUN +5.4%) are notable gainers.
- Big box retailers are the laggards today. Wal-Mart, Target (TGT +0.6%), and Costco (COST +0.6%) are right at market index averages.
Nov. 5, 2015, 8:25 AM| Nov. 5, 2015, 8:25 AM
Nov. 3, 2015, 10:02 AM
- Kate Spade (NYSE:KATE) is higher with Cleveland Research issuing positive comments on sales trends for the retailer.
- The company reports Q3 earnings on November 5 with analysts expecting revenue of $289M and EPS of $0.03.
- KATE is +3.88% to $19.01, still on the bottom end of the 52-week range of $16.76 to $35.75.
Oct. 27, 2015, 9:43 AM
- Coach (NYSE:COH) is up 8.3% after the company issued a Q3 report showing some improvement in key regions. The comp in North America was -9.5% vs. -19% in the last quarter.
- Peers Michael Kors (NYSE:KORS) and Kate Spade (NYSE:KATE) are also higher in opening trades, up 2.5% and 1.0% respectively, amid a down market day.
- Previously: Coach maintains earnings guidance (Oct. 27 2015)
Sep. 24, 2015, 10:23 AM
- Kate Spade (KATE +1.1%) is higher after Stephens jumps in with a boosted rating of Overweight on the high-end retailer.
- The Stephens report titled "Put This One In Your Bag" exudes confidence that Kate Spade will see margin improvement.
- The investment firm keeps its price target on Kate at $31 which implies +60% upside potential.
Aug. 11, 2015, 7:47 AM
- Citi adds Kate Spade (NYSE:KATE) to its Focus List.
- The investment firm names the retailer as its top pick for the back half of the year in the apparel/footwear sector.
- Citi has a price target of $33 on Kate which implies +50% upside from its current level.
- Previously: Kate Spade breaks out after management pulls the right levers (Aug. 05 2015)
- KATE +0.8% premarket to $21.22.
Aug. 5, 2015, 1:13 PM
- Kate Spade (KATE +6.5%) rallies after the retailer's earnings miss is overlooked by investors focusing on the company's ability to reduce its reliance on handbags and promotional activity.
- The breakout by Kate Spade arrives during a tough sales slog for the handbag sector (Coach, Vera Bradley, Michael Kors).
- Analysts say KS management has kept a "tight" level of inventory which has helped it ride out demand swings easier than peers.
- Previously: Kate Spade misses by $0.03, misses on revenue
- Previously: Double-digit sales growth for Kate Spade in Q2
Kate Spade & Co. designs and markets a portfolio of retail-based, premium brands including Kate Spade and Jack Spade. The company operates through three segments: KATE SPADE North America, KATE SPADE International and Adelington Design Group segment. The KATE SPADE North America segment includes... More
Sector: Consumer Goods
Industry: Textile - Apparel Clothing
Country: United States
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