Shares of Kate Spade & Co (NYSE:KATE) ended Tuesday session in green amid volatile trading. The shares closed up +0.15 points or 0.82% at $18.53 with 128.03 million shares getting traded. Post opening the session at $18.90, the shares hit an intraday low of $18.14 and an intraday high of $19.09 and the price vacillated in this range throughout the day. The company has a market cap of $2.41 billion and the numbers of outstanding shares have been calculated to be 128.03 million shares.
Kate Spade & Co (KATE) on Aug. 3, 2016 announced results for the second quarter ended July 2, 2016. SECOND QUARTER RESULTS
Net sales for the second quarter of 2016 were $320 million, an increase of $39 million, or 13.7% compared to the second quarter of 2015. Net sales for the second quarter of 2016 increased $47 million, or 17.2%, excluding sales for wind-down operations for the second quarter of 2015. Second quarter 2016 direct-to-consumer comparable sales growth was 4%, or 1% excluding eCommerce. Comparable sales per square foot for kate spade new york stores were $1,619 for the latest twelve months, compared to $1,611 for the twelve month period ended April 2, 2016.
Gross profit as a percentage of net sales was 59.7% for the second quarter of 2016, compared to 61.0% for the second quarter of 2015. Gross profit as a percentage of net sales was 61.6%, excluding the impact of wind-down operations for the second quarter of 2015.
Selling, general & administrative expenses were $157 million, or 49.0% of net sales in the second quarter of 2016, compared to $154 million, or 54.8% of net sales in the second quarter of 2015. Selling, general & administrative expenses in the second quarter of 2015 were $143 million, or 52.3% of net sales, excluding the results of wind-down operations and expenses associated with streamlining activities.
Income from continuing operations was $25 million, or $0.19 per diluted share in the second quarter of 2016, compared to $9 million, or $0.07 per diluted share, in the second quarter of 2015. Diluted earnings per share from continuing operations in the second quarter of 2016 using a normalized tax rate were $0.11, compared to adjusted diluted earnings per share of $0.08 in the second quarter of 2015.
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.”
Shares of PVH Corp (NYSE:PVH) ended Tuesday session in red amid volatile trading. The shares closed down -1.92 points or -1.77% at $106.73 with 80.23 million shares getting traded. Post opening the session at $107.65, the shares hit an intraday low of $105.95 and an intraday high of $108.80 and the price vacillated in this range throughout the day. The company has a market cap of $8.68 billion and the numbers of outstanding shares have been calculated to be 80.23 million shares.
On August 2, 2016 Calvin Klein, Inc., a wholly owned subsidiary of PVH Corp. (PVH), announced the appointment of Raf Simons as Chief Creative Officer of the brand, effective immediately.
Mr. Simons will lead the creative strategy of the Calvin Klein brand globally across the Calvin Klein Collection, Calvin Klein Platinum, Calvin Klein, Calvin Klein Jeans, Calvin Klein Underwear and Calvin Klein Home brands. As part of his role as Chief Creative Officer, Mr. Simons will oversee all aspects of Design, Global Marketing and Communications, and Visual Creative Services. Mr. Simons’ first collections will debut for the Fall 2017 season.
The appointment of Mr. Simons as Chief Creative Officer marks the implementation of Calvin Klein’s new global creative strategy, announced in April 2016, to unify all Calvin Klein brands under one creative vision. The strategy comes as part of a global evolution of the Calvin Klein brand, which began with the reacquisition of the Calvin Klein Jeans and Calvin Klein Underwear businesses in 2013. As Calvin Klein looks to grow the brand to $10 billion in global retail sales, this new leadership is intended to further strengthen the brand’s premium positioning worldwide and pave the way for future long-term global growth.
“The arrival of Raf Simons as Chief Creative Officer signifies a momentous new chapter for Calvin Klein,” said Steve Shiffman, CEO of Calvin Klein, Inc. “Not since Mr. Klein himself was at the company has it been led by one creative visionary, and I am confident that this decision will drive the Calvin Klein brand and have a significant impact on its future. Raf’s exceptional contributions have shaped and modernized fashion as we see it now and, under his direction, Calvin Klein will further solidify its position as a leading global lifestyle brand.”