What to Look for in Kate Spade Earnings

By Chris Lange Updated Jan 13, 9:55AM EST · Published May 3, 12:55PM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

What to Look for in Kate Spade Earnings — © Thinkstock

Kate Spade & Co. (NYSE: KATE) is scheduled to report its first-quarter financial results before the markets open on Wednesday. The consensus estimates from Thomson Reuters are calling for $0.05 in earnings per share (EPS) on $270.97 million in revenue. In the same period of last year, the company posted EPS of $0.03 and $239.63 million in revenue.

In the fourth quarter, the company reported North American net sales totaled $371 million, an increase of $45 million, or 13.6%, from the comparable 2014 period. This segment also ended the last quarter with 104 specialty retail stores and 64 outlet stores, reflecting the net addition over the past 12 months of 11 specialty retail stores and seven outlet stores.

For the international segment, Kate Spade said fourth-quarter sales of totaled $52 million, a decrease of $8 million, or 13.3%, from the comparable 2014 period. The international segment ended the quarter with 22 Kate Spade New York specialty retail stores, 52 concessions and 13 outlet stores, reflecting the net reduction over the past 12 months of 10 specialty retail stores and one outlet store.

Since this last earnings report, the company has been on a tear, with the stock up about 28%, and even outperforming the broad markets in 2016 with the stock up about 43% year to date. However, over the past 52 weeks the stock is actually down over 20%.
[nativounit]
A few analysts weighed in on Kate Spade prior to the release of the earnings report:

Cowen reiterated an Outperform rating.
Mizuho has a Buy rating with a $30 price target.
Citigroup reiterated a Buy rating with a $32 price target.
Buckingham Research initiated coverage with a Buy rating and a $31 price target.

Shares of Kate Spade were trading down 0.8% at $25.38 on Tuesday, with a consensus analyst price target of $28.13 and a 52-week trading range of $15.10 to $33.50.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.