Kate Spade swings to 2Q profit on revenue boost; stock up in premarket trading

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NEW YORK — Kate Spade & Co. on Wednesday reported a second-quarter profit, helped by a boost in sales in North America.

The sales increase and a boost in the low end of the company's earnings projections buoyed investors, who drove Kate Spade's stock up more than 8 percent in premarket trading.

The clothing, handbag and accessories company reported profit of $8.5 million, or 7 cents per share, up from a loss a year ago. Earnings, adjusted for non-recurring costs and to account for discontinued operations, were 8 cents per share.

The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 11 cents per share.

The New York-based company's revenue rose 5.7 percent to $281.1 million in the period, which also missed Street forecasts. Four analysts surveyed by Zacks expected $294 million.

Sales in North America rose 13.1 percent to $236 million and international sales fell 17.3 percent to $41 million.

Kate Spade shares have dropped 35 percent since the beginning of the year. The stock has dropped 45 percent in the last 12 months.


Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on KATE at http://www.zacks.com/ap/KATE


Keywords: Kate Spade, Earnings Report

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