Kate Spade Misses 3Q Expectations And Soars 16%

Kate Spade & Company KATE announced results Thursday for the third quarter ended October 4, 2014.

Revenues were $250 million, below estimates of $253.94, an increase of $58 million, or 30 percent, from the comparable 2013 period.

The increase in revenue was partially offset as selling, general & administrative expenses increased $38 million, or 32.3 percent, to $154 million compared to the third quarter of 2013.

Adjusted EPS from continuing operations was zero, below expectations of $0.02 and above the adjusted loss per share of ($0.05) in the third quarter of 2013.

Adjusted EBITDA, net of foreign currency transaction adjustments, was $21 million for the third quarter of 2014, compared to $11 million for the third quarter of 2013. Comparable adjusted EBITDA, net of foreign currency transaction adjustments, was $12 million for the third quarter of 2013.

Craig A. Leavitt, Chief Executive Officer of Kate Spade & Company, said:  "This quarter, we made great strides against our strategic plan for growth.  We achieved impressive topline growth results both in the U.S. and globally, with net sales of $250 million, a 30 percent increase over the same time period last year, as well as adjusted EBITDA of $21 million, an increase of 69 percent from comparable adjusted EBITDA last year.  We also exceeded our comp growth expectations this quarter and continue to drive these results while remaining focused on building quality of sale."

Kate Spade & Company recently traded at $30.54, up 16.30 percent.