Kate Spade rises on strong 3rd-quarter sales growth and greater outlook for 2014
Shares of Kate Spade & Co. jumped Thursday after the company reported greater-than-expected sales and raised its expectations for the year.
The clothing, handbag and retailer said its revenue climbed 30 percent to $250.4 million. Kate Spade is now forecasting greater earnings before interest, taxes, depreciation and amortization, and it also raised its expectations for sales at stores open at least a year — an important measurement of retailer performance leaves out stores that have opened or closed within the last year.
Kate Spade shares rose $4.84, or 18.4 percent, to $31.10 in afternoon trading.
The New York company said it lost $9.1 million, or 7 cents per share, over the three months that ended Oct. 4. Excluding one-time costs and gains, Kate Spade said it broke even on a per-share basis.
According to Zacks Investment Research, analysts expected Kate Spade to report a profit of 1 cent per share on $244.1 million in revenue.
Kate Spade shares have decreased 18 percent since the beginning of the year.
Elements of this story were generated by Automated Insights (http://www.automatedinsights.com/ap ) using data from Zacks Investment Research. KATE stock research report from Zacks: http://www.zacks.com/ap/KATE .
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