Kate Spade Q1 net sale increase 28.4 percent

Kate Spade & Company, for the first quarter ended April 4, 2015 reported net sales, excluding sales for wind-down operations, of 240 million dollars, an increase of 53 million dollars, or 28.4 percent compared to the first quarter of 2014. Reported net sales for the first quarter were 255 million dollars, an increase of 32 million dollars, or 14.2 percent, from the comparable 2014 period.

”This quarter, our overall performance reflects positive momentum across our four category pillars – women's, men's, children's and home – with a pro-forma net sales increase of 28 percent and direct-to-consumer comparable sales growth of 9 percent,” said Craig A. Leavitt, Chief Executive Officer of Kate Spade & Company.

On a GAAP basis, loss from continuing operations was 54 million dollars, or 0.42 dollar per share, compared to loss from continuing operations of 38 million dollars, or 0.31 dollar per share, for the first quarter of 2014. Adjusted diluted earnings per share from continuing operations were 0.01 dollar, compared to an adjusted loss of 0.04 dollar per share in the first quarter of 2014.

Gross profit as a percentage of net sales was 62 percent, excluding the impact of wind-down operations and was favorably impacted by timing. On a reported basis, gross profit decreased to 60.6 percent, compared to 61.2 percent in the comparable 2014 period. Kate Spade North America net sales were 187 million dollars, an increase of 44 million dollars, or 30.8 percent compared to the first quarter of 2014. Reported net sales for the first quarter of 2015 were 196 million dollars, an increase of 32 million dollars, or 19.4 percent, from the comparable 2014 period. The company ended the quarter with 92 specialty retail stores and 60 outlet stores, reflecting the net addition over the last 12 months of 15 specialty retail stores and 18 outlet stores.

Kate Spade International net sales were 47 million dollars, an increase of 7 million dollars, or 18 percent. Reported net sales for the first quarter were 52 million dollars, a decrease of 1 million dollars, or 1.7 percent, from the comparable 2014 period. The company ended the quarter with 26 specialty retail stores, 51 concessions and 13 outlet stores, reflecting the net addition over the last 12 months of 6 concessions and 3 outlet stores and a net reduction of 3 specialty stores, including the conversion of 6 specialty stores, 3 concessions and 1 outlet store in Hong Kong, Macau and Taiwan to a joint venture.

Adelington Design Group net sales were 6 million dollars, an increase of 2 million dollars or 45.4 percent. Reported net sales were 7 million dollars, a 12 percent increase compared to 2014, principally reflecting increases in Liz Claiborne and Monet.