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Kate Spade & Company (KATE)

  • Tue, Mar. 31, 9:59 AM
    • A better-than-expected report from Movado is giving a lift to some luxury peers.
    • Fossil (FOSL +1%), Coach (COH +0.5%), and Kate Spade (KATE +0.2%) are all higher on a down day in the markets.
    • Movado was able to take some measures to mitigate the impact of F/X swings.
    • Previously: Movado rips 8% gain after guidance pleases
    | Comment!
  • Mon, Mar. 9, 3:15 PM
    • More selling pressure on Kate Spade (KATE -2.6%) has pushed shares below $32.
    • The stock has lost close to 11% since the middle part of Wednesday.
    • Some retail analysts think Kate has been hit too hard by broader F/X concerns over the luxury sector.
    • Due to its scale, Kate Spade is a little bit more nimble than peers.
    • Cowen Research lumps Kate Space into the group of retailers that it sees benefiting from lower gas prices and unemployment - a distinction not made by all.
    | Comment!
  • Wed, Mar. 4, 9:22 AM
    • Kate Spade (NYSE:KATE) plans to make an aggressive push into home goods and furniture through new licensing agreements.
    • "The breadth of our home décor line will feature products at all access points in both pricing and distribution from an $8 notebook to an $8,000 piece of furniture," disclosed CEO Craig Leavitt during the earnings call yesterday.
    • Kate Spade earnings call
    • KATE -1.0% premarket to $34.23.
    | Comment!
  • Tue, Mar. 3, 2:04 PM
    • Kate Spade (KATE -2.4%) trades lower following a soft read on margins for 2015 amid F/X pressure in Japan, although the drop is roughly in-line with other luxury stocks which are having a rough day.
    • The company's 2015 revenue guidance of $1.2B-$1.275B fell short of the $1.28B that analysts expected.
    • During the earnings call, execs reiterated that a measured approach to promotional activity will be the plan this year. Flash sales and either margin-crunching initiatives are likely to be reduced.
    • Kids clothing and fragrances are two categories where the company sees sales growth and potential distribution deals.
    • Earnings call transcript
    • Previously: Kate Spade misses by $0.04, beats on revenue
    • Previously: More on Kate Spade's Q4
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  • Tue, Mar. 3, 8:36 AM
    • Kate Spade (NYSE:KATE) reports comparable direct-to-consumer sales rose 28% in Q4.
    • Segment revenue growth: Kate Spade North America +50.5% to $326.75M; Kate Spade International 56% to $60.07M, Adelington Design Group -40.5% to $11.76M.
    • Gross profit rate -380 bps to 57.8%.
    • Adjusted operating margin rate declined 179 bps to 13.32%.
    • SG&A expenses +33% to $18.77M.
    • FY2015 Guidance: Net sales: $1.2B to $1.275B; Adjusted EBITDA: $185M to $200M; DTC comparable sales growth: high single digits; D&A: $50M to $55M; Capex: ~$75M; Interest expense: $18M to $22M; Normalized tax rate: 38% to 40%; Basic share count: ~128M; New store openings: 50 to 55.
    • KATE +1.98% premarket
    | Comment!
  • Mon, Mar. 2, 3:24 PM
    • Shares of Kate Spade (KATE +1.7%) head into earnings day tomorrow with a head of steam.
    • Analysts expect the company to Q4 revenue of $389.7M and EPS of $0.27. The crowd as Estimize is at $391M and $0.26.
    • The earnings call will be key with execs likely to be questioned on the brand shifting strategies which were recently announced and the impact from the West Coast port slowdown.
    • Previously: Kate Spade +7.6% after brand repositioning and guidance update (Jan. 29 2015)
    | Comment!
  • Thu, Jan. 29, 9:12 AM
  • Thu, Jan. 29, 8:42 AM
    • Kate Spade (NYSE:KATE) issues preliminary results for full-year 2014.
    • A sales pop of over 40% to $1.13B-$1.14b expected.
    • Adjusted EBITDA of $145M-$150M forecast.
    • 2015 guidance: Net sales in a range of $1.2B-$1.275B; direct comp sales growth in high single digits; adjusted EBITDA of $185M-$200M.
    • Brand reset: The company says it will roll the Kate Spade Saturday brand into Kate Spade New York and give new marching orders to Jack Spade.
    • Previously: Kate Spade sets strategy in China
    • KATE +7.6% to $32.07 premarket.
    | Comment!
  • Fri, Jan. 9, 11:04 AM
    • Another tough day for luxury retail stocks as more concerns on pricing trends build up.
    • Consulting firm Bain isn't helping sentiment, noting the luxury sector in China showed negative growth (-1%) for the first time in 2014. An ongoing crackdown by Beijing on corruption is in the background.
    • Michael Kors (KORS -1.7%), Ralph Lauren (RL -2%), Kate Spade (KATE -3.2%), Fossil (FOSL -1%), Vera Bradley (VRA -2%), and Coach (COH -2.2%) are all under-performing market averages.
    • Related ETFs: PEJ.
    | 1 Comment
  • Tue, Jan. 6, 9:52 AM
    • Kate Spade (KATE -3.3%) trades lower on a day with a healthy dose of handbag news.
    • Coach made a diversification play with an acquisition of luxury shoe brand Stuart Weitzman.
    • The development could position Coach to compete more directly with Kate.
    • Also of note for KS investors, a channel check on Michael Kors showed a high level of promotional activity.
    | 1 Comment
  • Nov. 6, 2014, 12:47 PM
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  • Nov. 6, 2014, 9:14 AM
  • Aug. 12, 2014, 12:45 PM
  • Aug. 12, 2014, 11:57 AM
    • The bottom just fell out of Kate Spade (KATE -18.8%) this morning after shares had run up a tidy 7% post-earnings gain.
    • During the firm's earnings call, execs said they "might" push out long-term guidance by a year.
    • That ambiguity by management and the heavy hand of short-minded traders appear to be swinging momentum.
    • Volume on KATE is already 10X normal activity.
    • Earnings call webcast
    | 1 Comment
  • Aug. 12, 2014, 10:28 AM
    • 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.
  • Aug. 12, 2014, 9:06 AM
    • Kate Spade (NYSE:KATE) reports comparable direct-to-consumer sales rose 30.4% in Q2.
    • The rate of sales growth for both the Kate Space North America and Kate Spade International segments was over 50% during the period.
    • The retailer's gross profit rate fell 320 bps to 58.6% on a shift in mix toward off-price volume.
    • KATE +5.8% premarket
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Company Description
Kate Spade & Co designs and markets accessories and apparel under three brands namely kate spade new york, KATE SPADE SATURDAY and JACK SPADE.