Market Overview

Kate Spade Expected To Be The Fastest Growing Player In Accessories


CLSA initiated Kate Spade & Co ( (NYSE: KATE) with an Outperform rating and $21 price target. The view is based on expectations that the company would be the fastest-growing player in accessories, given its small global footprint and underpenetrated wholesale channel.

Analyst Rick Patel believes the company has earnings per share power of $1.85, given continuing new stores and strong brand acceptance over the long term. However, the analyst noted some recent challenges such as weak traffic, which impacted comps, and elevated promotions at outlets.

CLSA also noted that comps at full price stores are hurt by its aversion to discount and that Japan is weak. Though the firm sees several tailwinds helping margin expansion, it believes the challenges to sales will impact margins as well.

CLSA said it like Kate Spade's long-term story, but is kept at bay by near-term challenges.

At time of writing, shares of Kate Spade were up 0.17 percent at $17.68.

Posted-In: CLSAAnalyst Color Initiation Analyst Ratings


Related Articles (KATE)

View Comments and Join the Discussion!

Latest Ratings

WEEDCantor FitzgeraldMaintains18.9
TGTXCantor FitzgeraldMaintains19.0
SPLKCleveland ResearchDowngrades
IQVWolfe ResearchUpgrades
PRAHWolfe ResearchUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Exploding iPhone 7? Not Really

USDA Daily Hog Slaughter; Lean Hog Futures Higher