New York – Kate Spade & Company earned net income of $46 million in the first quarter of fiscal 2014. This marked a return to profitability after a net loss of $52 million in the prior year period.
The inclusion of net income from discontinued operations of $101 million helped Kate Spade reverse its net loss. Net sales were $328 million, an increase of 33.5% from $246 million in first quarter 2013, reflecting an increase in sales in the Kate Spade and Juicy Couture segments, partially offset by a decline in sales in the Adelington Design Group segment.
“While the promotional environment was much more competitive than last year, we stayed on strategy to build our full-price business in our specialty stores with a focus on client experience and rigorous planning that increased conversions,” said Craig A. Leavitt, president and CEO of Kate Spade. “Our small leather goods and handbag categories led this robust growth. Moreover, we are reaffirming our 2014 Adjusted EBITDA guidance of $115 million-125 million."