Kate Spade & Co (KATE) Tops Q2 EPS by 5c, Comps Beat, Offers Guidance

Kate Spade & Co (NYSE: KATE) reported Q2 EPS of $0.05, $0.05 better than the analyst estimate of $0.00. Revenue for the quarter came in at $266 million versus the consensus estimate of $237.83 million.

Comps increase 30% vs 16.7% expected.

Kate increased total company full year 2014 Adjusted EBITDA guidance to a range of $120 million - $130 million from the previously guided range of $115 million - $125 million and adjusts targeted full year 2014 Kate Spade Brand Adjusted EBITDA margin expansion to approximately 50bps.

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 for the second quarter of 2014, a $21 million increase compared to the second quarter of 2013. In addition, we achieved comparable store productivity of $1,477 per square foot over the last twelve months, our 16th consecutive quarter of annualized store productivity growth. We are increasing Total Company full year 2014 Adjusted EBITDA guidance to a range of $120 million - $130 million from the previously guided range of $115 million - $125 million."

Mr. Leavitt concluded: "Net sales for both our North American and International segments grew 55% and 54%, 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."

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

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