Kate Spade & Co. (KATE) Tops Q2 EPS by 5c, Guidance Falls Short

Kate Spade & Co. (NYSE: KATE) reported Q2 EPS of $0.19, $0.05 better than the analyst estimate of $0.14. Revenue for the quarter came in at $320 million versus the consensus estimate of $318.55 million.

Direct-to-consumer comparable sales growth of 4% for the second quarter.

The firm sees FY EPS of $0.63-$0.70 and revenues of $1.37-$1.4 billion, versus the consensus of $0.78 and $1.41 billion.

Craig A. Leavitt, Chief Executive Officer of Kate Spade & Company, said: "Several factors contributed to our second quarter results falling short of our expectations, the most impactful of which are the retail landscape and continuing tourist headwinds. As we navigate these broader industry trends, we remain very confident in our long-term growth initiatives and have a number of strategies in place to drive our business in the second half of 2016. We continue to focus on the factors we can control, executing our long-term strategy and continuing to grow as a global, multi-channel lifestyle brand."

George Carrara, President and Chief Operating Officer of Kate Spade & Company, added: "Looking ahead to the back half of the year, we are taking a prudent approach and updating our guidance accordingly. We remain confident in our long term ability to continue to achieve robust margin expansion, both in 2016 and beyond, based primarily on our ability to scale our foundation, leverage expenses, grow our licensing business and benefit from supply chain enhancements."

For earnings history and earnings-related data on Kate Spade & Co. (KATE) click here.

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