US: Kate Spade upbeat as Q2 loss narrows
- Q2 loss narrowed to $4m
- Gross margin narrows to 58.6%
- Sales grow 49%
Kate Spade, formerly Fifth & Pacific, has narrowed its net loss in the second quarter thanks to strong performances from its North America and international divisions.
In the three months ended 5 July, net losses amounted to US$4m. This compared to a loss of $43m a year earlier, and is inclusive of a $20m loss related to discontinued operations.
The New York-based company is separating its former Kate Spade reportable segment into two: Kate Spade North America and Kate Spade International. The Adelington Design Group will also be a reportable segment.
Gross margin narrowed to 58.6% in the quarter from 61.8% in the comparable 2013 period.
Total company net sales were up 49% to $266m, while revenues in Kate Spade's North American and international segments grew 55% and 54%, respectively.
COO George Carrara: "We are pleased with our outperformance. Since completing the transition to our newly integrated organisation this quarter, our team is able to cohesively manage our initiatives in a more streamlined, effective way. Currently, we are conducting our annual business planning process and are actively pursuing both existing and newly identified margin expansion opportunities."
Help test our new apparel sourcing tool.
Teen apparel retailer Abercrombie & Fitch Co has appointed Katia Kuethe as its new creative director....
- What TTIP might mean for US, EU textiles & apparel
- Unlocks for the future fashion sourcing landscape
- EU eyes mandatory due diligence for apparel supply
- Geo-political uncertainty and how to survive it
- Four steps to reduce product defects
- US Q4 in brief – Finish Line, Oxford Industries
- Li & Fung forms supply chain partnership with PVH
- Sears has "substantial doubt" of future
- Vietnam limits hazardous chemicals in apparel
- Walmart snaps up online fashion firm ModCloth
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective