Analyst: Kate Spade's Seasonal Items Flying Off The Shelves, Brand 'Isn't Irrelevant'

Shares of Kate Spade & Co KATE soared on Wednesday after the designer and marketer of high-end accessories and apparel was said to be seeking strategic alternatives, including a sale of itself.

On Thursday, optimism over a sale grew as Bloomberg reported that Kate Spade's management team along with its financial advisers are expected to begin a formal auction next month and has already attracted the interest of six bidders.

By Friday, investors who bought Kate Spade's stock this week with the hopes of the company being bought out at a hefty premium should find it encouraging that its holiday sales were positive.

Gabriella Santaniello, a fashion industry analyst and expert, told the New York Post that Kate Spade's novelty items were flying off the shelves over the past few months.

Kate Spade's novelty items included holiday themed cold weather accessories and glitterized Miss Piggy handbags.

"We were in stores that needed crowd control," Santaniello said, adding that "the brand isn't irrelevant."

The Post further suggested the early look into Kate Spade's sales, which hasn't been officially disclosed, makes the brand more enticing to potential bidders.

Analysts at Wells Fargo suggested on Thursday that Kate Spade could be a "strong" takeover target for Michael Kors Holdings Ltd KORS or Coach Inc COH.