Kate Spade: Wall Street Hates It, But Shoppers Love It
Kate Spade & Company: Early Innings Of Long-Term Growth
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
Wed, Aug. 3, 9:47 AM
- Kate Spade's (KATE -19.2%) weak results posted earlier this morning have created some broad anxiety across the spectrum of retailers that sell handbags luxury apparel, and accessories.
- The report from Kate Spade threw a bright spotlight on the uphill battle the sector faces in replacing sales from the reduced level of tourists pouring into the U.S.
- Coach (COH -1%), Vera Bradley (VRA -2.5%), Michael Kors (KORS -4%), Movado (MOV -0.3%), and Fossil (FOSL -2.9%) are all notably lower.
- Previously: Weak tourism cuts into results at Kate Spade (Aug. 3)
Wed, Aug. 3, 9:15 AM
- Gainers: SZMK +45%. KOOL +43%. INVT +26%. GNW +23%. ZAGG +14%. OCLR +12%. FIT +9%. BOFI +8%. ING +8%. TRXC +8%. ETP +7%. FCAU +6%. ETSY +6%. ZTS +6%.
- Losers: RUBI -29%. DRWI -20%. CRAY -20%. VGZ -19%. KATE -18%. CYH -17%. CROX -17%. ELGX -11%. FTAI -9%. QRVO -8%. SHIP -6%. COH -6%. RGC -6%. HBI -6%. KORS -6%. INO -5%.
Wed, Aug. 3, 7:24 AM
- Kate Spade (NYSE:KATE) reports sales in North America were up 15% to $271M, while international sales increased 7% to $43M.
- Tourist headwinds were cited as a negative factor during the quarter.
- The company's gross profit as a percentage of sales fell 130 bps to 59.7%.
- SG&A expense rate decreased 580 bpd to 49.0%.
- Store count +17 Q/Q to 426.
- The company expects full-year sales of $1.37B to $1.40B vs. $1.41B and EPS of $0.63 to $0.70.KATE -0.79% premarket to $19.98.
- Previously: Kate Spade misses by $0.03, beats on revenue (Aug. 3)
Wed, Aug. 3, 7:04 AM
Tue, Aug. 2, 5:30 PM
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Tue, Aug. 2, 3:33 PM
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, 12:13 PM
- Kate Spade (KATE -6.7%) and Vera Bradley (VRA -5.4%) are sharply lower even with broad retail indexes slightly higher on the day.
- There's been some indication that traders are worried over the elevated level of sales on Kate and Vera products.
- On Wall Street, Telsey lowered its price target on VRA to $19, while no rating actions came down on KATE.
Thu, Jun. 2, 12:00 PM
Sat, May 14, 11:01 AM
- The retail sector stays in focus next week with Target (NYSE:TGT), Wal-Mart (NYSE:WMT), TJX Companies (NYSE:TJX), and Ross Stores (NASDAQ:ROST) all due to report on Q1 earnings to follow on a week of dismal reports and guidance from the department store sector (Nordstrom, L Brands, Macy's, Kohl's). Home improvement chains Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) are also due to spill numbers.
- The story from the Commerce Department's April read of retail sales (+3.0% Y/Y, +1.3% M/M) is one of a consumer spending on housing, entertainment, and personal care/fitness over apparel and general merchandise. The 10% Y/Y gain in the nonstore retailer category also tipped that the Amazon (NASDAQ:AMZN) Effect is magnifying.
- Amplify ETFs CEO Christian Magoon tells Seeking Alpha that the traditional retail model appears to be broken. Amplify's Online Retail ETF (NASDAQ:IBUY) is a bet on companies such as Netflix (NASDAQ:NFLX), GrubHub (NYSE:GRUB), Blue Nile (NASDAQ:NILE), and Shopify (NYSE:SHOP) that are reeling in millennial dollars.
- Magoon on retail: "Traditional retailers face the headwinds of higher cost structures including the very real threat of increasing wages in the form of the $15 minimum wage campaign. Less flexible with inventory management, they also are more vulnerable to issues like weather and changing consumer preferences."
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE.
- Apparel stocks: KATE, ANN, LULU, PVH, VNCE, CRI, UA, HBI, VFC, COLM, GIL, SQBG, JCP, KSS, DDS, M, JWN, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, GIII, SQBG, HBI, VRA, ICON, SHOO, PERY, DXLG, BONT, GES, URBN, RL,GIL, NKE, OXM, HBI, VNCE, PERY, ICON, FL.
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)
Wed, May 4, 7:12 AM
- Kate Spade (NYSE:KATE) reports sales were up 15% in Q1 if stores in the process of winding down were excluded from the comparison.
- Sales in North America rose 17.1% to $219M. International sales were 3.2% higher at $47M (excluding wind-down stores).
- Direct-to-consumer sales increased 19% during the quarter.
- Q1 gross profit rate -20 bps to 61.8%.
- Q1 SG&A expense rate -210 bps to 55.3%.
- Looking ahead, Kate Spade expects full-year sales of $1.385B-$1.41B vs. $1.41B consensuss and EPS of $0.70-$0.80 vs. $0.77 consensus.
- Previously: Kate Spade EPS in-line, beats on revenue (May 4)