Kate Spade reports 20 percent rise in FY15 net sales

Kate Spade net sales for the fourth quarter of 2015, excluding sales for wind-down operations, were 428 million dollars, an increase of 52 million dollars, or 13.9 percent compared to the fourth quarter of 2014. Net sales excluding sales for wind-down operations for the full year, were 1.215 billion dollars, an increase of 208 million dollars, or 20.6 percent compared to 2014.

Commenting on the results, Craig A. Leavitt, CEO of Kate Spade & Company, said, “In 2015, we became a stronger, refocused Kate Spade & Company. We made significant progress along our two axes of growth - product category and geographic expansion - introducing 14 new product categories and entering 8 new countries. Our results reflect our success, with sales growth of 21 percent on a pro forma basis over last year.”

Important highlights of the quarter and full year

Reported net sales for the quarter were 429 million dollars, an increase of 30 million dollars, or 7.6 percent, from the comparable 2014 period. For the fourth quarter, on a GAAP basis, income from continuing operations was 62 million dollars, or 0.48 dollar per diluted share, compared to 126 million dollars, or 0.99 dollar per diluted share. Adjusted diluted earnings per share from continuing operations were 0.32 dollar, compared to 0.24 dollar in the fourth quarter of 2014.

For the full year 2015, the company reported income from continuing operations of 22 million dollars, or 0.17 dollar per diluted share, compared to income from continuing operations for the full year 2014 of 77 million dollars, or 0.60 dollar per diluted share. Reported net sales for the full year were 1.243 billion dollars, an increase of 104 million dollars, or 9.1 percent, from 2014.

Adjusted diluted earnings per share from continuing operations were 0.48 dollar compared to 0.25 dollar in 2014. Adjusted EBITDA, excluding the previously announced wind-down operations in 2015 was 203 million dollars for 2015.

“Looking ahead, we will harness the powerful momentum we created in 2015 to drive Kate Spade & Company's growth across our four category pillars - women's, men's, children's and home. As we enter 2016, we are well-positioned for sustainable long-term growth," added Leavitt.