Fifth & Pacific 2013 net sales soar 21.2 percent

REPORT_ Fifth & Pacific Companies announced results for the fourth quarter of and fiscal year 2013. Net sales for the full year of 2013 were 1.265 billion dollars, an increase of 222 million dollars, or 21.2 percent, from the comparable 2012 period. For the fourth quarter of 2013 on a GAAP basis,

income from continuing operations, which includes the Juicy Couture Brand and excludes the Lucky Brand, was 161 million dollars, or 1.29 dollars per diluted share, compared to income from continuing operations of 52 million dollars, or 0.42 dollars per share, for the fourth quarter of 2012.

Net

sales for the fourth quarter of 2013 including Juicy Couture were 427 million dollars, an increase of 78 million dollars, or 22.3 percent, from the comparable 2012 period. Adjusted diluted earnings per share from continuing operations for the fourth quarter of 2013 was 0.15 dollars, compared to 0.04 dollars for the fourth quarter of 2012.

For the full year of 2013, the New York-based company recorded income from continuing operations, which includes Juicy Couture and excludes Lucky Brand, of 74 million dollars, or 0.60 dollars per share, compared to a loss from continuing operations for the full year of 2012 of 70 million dollars, or 0.64 dollars per share. Adjusted diluted loss per share from continuing operations in the full year of 2013 was 0.15 dollars, compared to 0.31 dollars in the full year of 2012.

Commenting on the results, William L. McComb, Chief Executive Officer of Fifth & Pacific Companies, said, “Full year 2013 Kate Spade adjusted brand EBITDA was 130 million dollars, compared to 95 million dollarsin 2012, reflecting a sizeable 37.4 percent increase. Inclusive of the results of Lucky Brand, which was still part of our brand portfolio in the fourth quarter, but excluding the results of Juicy Couture, full year 2013 adjusted EBITDA was 126 million dollars, consistent with our recently provided guidance.”

McComb further added saying, “I formally hand over the CEO role to Craig Leavitt. I leave the company very confident about its future as this new senior management team of Craig, Chief Creative Officer Deborah Lloyd and President and COO George Carrara is well positioned to deliver on Kate Spade's significant growth opportunities. We are optimistic about the brand's ability to deliver sizeable growth in 2014 and beyond. The company's name now changes to Kate Spade & Company.”

Craig A. Leavitt, Chief Executive Officer of Kate Spade & Company said, “Even with all of the bad weather, I'm happy with the business trends in the first quarter-to-date, which are consistent overall with our expectations. We are seeing continued strong performance in the key handbag/small leather goods category, in particular. We can also re-affirm our previously guided range of 115 dollars to 125 million dollars for adjusted EBITDA for fiscal 2014, which includes Kate Spade, the Adelington Design Group and Corporate.”

Net sales for Kate Spade were 256 million dollars, a 48 percent increase compared to 2012, reflecting increases across all operations in the segment. Net sales for the fourth quarter of 2013 and 2012 included 26 million dollars and 16 million dollars of Kate Spade Japan net sales, respectively.

Net sales for Juicy Couture were 152 million dollars, a 1.4 percent decrease compared to 2012, which primarily reflected decreases in wholesale, specialty retail and licensing operations, partially offset by increases in our outlet and e-commerce operations. Net sales for the Adelington Design Group segment decreased 3 million dollars, or 13 percent, in the fourth quarter to 20 million dollars.