Kate Spade net sales increase 46 percent in H1

REPORT_ Kate Spade & Company, for the first half of 2014 recorded a

loss from continuing operations of 52 million dollars, or 0.42 dollars per share, compared to a loss from continuing operations for the first half of 2013 of 47 million dollars, or 0.40 dollars per share. Net sales for the first half of 2014 were 490 million dollars, an increase of 154 million dollars, or 46 percent. Adjusted earnings per share from continuing operations in the first half of 2014 were 0.01 dollars compared to an adjusted loss per share from continuing operations of 0.18 dollars in the first half of 2013.

The company announced that for the second quarter of 2014 on a GAAP basis, loss from continuing operations, was 14 million dollars, or 0.11 dollars per share, compared to a loss from continuing operations of 24 million dollars, or 0.20 dollars per share. Net sales for the second quarter of 2014, were 266 million dollars, an increase of 87 million dollars, or 48.7 percent, from the comparable 2013 period. Adjusted earnings per share from continuing operations for the second quarter were 0.05 dollars, compared to adjusted loss per share of 0.08 dollars for the second quarter of 2013.

Commenting on the results, Craig A. Leavitt, Chief Executive Officer of Kate Spade & Company, said, “Despite a more promotional retail environment, Kate Spade & Company had another strong quarter, with sales increases coming across both our North American and International segments. Adjusted EBITDA for Kate Spade & Company, net of foreign currency transaction adjustments, was 32 million dollars for the second quarter of 2014, a 21 million dollars increase compared to the second quarter of 2013. In addition, we achieved comparable store productivity of 1,477 dollars per sq. ft. over the last twelve months.. We are increasing total company full year 2014 Adjusted EBITDA guidance to a range of 120 million dollars- 130 million dollars from the previously guided range of 115 million dollars- 125 million dollars.”

“Net sales for both our North American and International segments grew 55 percent and 54 percent, respectively, illustrating that our differentiated product resonates with consumers around the world. We have a clear vision of our customer and continue to design strong collections as we shape our fast-growing, global lifestyle brand,” Leavitt added.

Adjusted EBITDA, net of foreign currency transaction adjustments, was 32 million dollars for the second quarter of 2014, compared to 7 million dollars for the second quarter of 2013. Comparable Adjusted EBITDA, net of foreign currency transaction adjustments, was 11 million dollars. Adjusted EBITDA, net of foreign currency transaction adjustments, was 49 million dollars for the first half of 2014, compared to 11 million dollars for the first half of 2013.