Kate Spade Earnings Beat Estimates

Kate Spade & Co. reported third-quarter net income of $29.6 million, or 23 cents per share, up from $2.3 million, or 2 cents per share, for the same period last year. Earnings per share were 13 cents using a normalized tax rate. Sales totaled $316.5 million, up from $277.3 million. The FactSet consensus was 8 cents per share on sales of $311 million. Direct-to-consumer same-store sales increased 6.7%, but were flat excluding e-commerce. The company reaffirmed its 2016 guidance of sales between $1.37 billion and $1.40 billion and earnings per share between 63 cents and 70 cents. Kate Spade shares are down 8.1% for the year so far while the S&P 500 Index is up 3.3% for the same period.