Kate Spade announced it’s exploring “strategic alternatives” in its earnings report today. The statement confirms industry chatter which has speculated the firm is looking for a buyer—possibly from competitors like Michael Kors or Coach.
Shares at the company were up by 6.8% in premarket trading on the news.
Takeover talk began in November when Caerus Investors, an investor in the firm, issued a letter to the board, asking it to consider selling the company.
The company said it’s working with Perella Weinberg Partners as its financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison to assess alternatives, though no further details were or will be provided as possible deals are in the works.
“Our solid fourth quarter and fiscal year performance demonstrate the strength of our differentiated business model, as we continued to gain market share and deliver strong growth despite a challenging retail environment. In 2016, we further strengthened our handbag portfolio, introduced new categories to our casual ready-to-wear classifications, and thoughtfully expanded our global store base, opening 52 net new owned and partner-operated stores,” said Craig A. Leavitt, chief executive officer of Kate Spade & Company. “At the same time, we remain committed to maximizing value and are exploring strategic alternatives that are in the best interests of our company and shareholders.”
Kate Spade reported a net sales increase of 9.8% to $471 million for the fourth quarter, ended Dec. 31, 2016. Comp stores sales, including e-commerce, increased by 9.3%.
The company’s North American net sales were up 9.5% to $407 million compared to the same period in 2015, and international business reached $59 million, an increase of 12.4%.
Year-on-year net sales increased by 11.2% to $1.38 billion.
Net income for the quarter reached $86 million and $154 million for the year.
Retailers the country over can breathe a collective sigh of relief now that the border adjustment tax is officially, fully dead.Read more
How can manufacturers take advantage of the opportunities in new markets while mitigating their exposure to fraud?Read more
This week Amazon's inside track on cheap shipping, American-made brands sounding off on the Trump administration and consignment's new normal all made headlines.Read more
Sometimes it feels like speed is all anyone’s talking about these days, as retailers and brands look for ways to increase the efficiency of their supply chains. Unfortunately, most companies are only able to pay lip service to reducing time to market.Read more
It hasn’t been smooth sailing for footwear sourcing in this shifting retail landscape, and with imports faltering and duties per pair rising to new highs, brands are looking to reorient themselves in new ways and spaces.Read more
Cargo volume set a record in the first half of the year in the Port of New York and New Jersey and are on pace for the highest annual volume for the year.Read more