Kate Spade Shares Jump After It Announces Review Of Strategic Alternatives

Kate Spade & Co. shares rose 6.8% in premarket trading after the handbag company said it has hired consultants, Perella Weinberg Partners, to explore strategic alternatives. Net income for the fourth quarter totaled $85.5 million, or 66 cents per share, up from $61.5 million, or 48 cents per share, for the same period last year. The FactSet EPS consensus was 34 cents. Sales for the quarter were $470.8 million, up from $428.0 million, but below the $472.0 million FactSet consensus. Direct-to-consumer same-store sales rose 9% for the quarter. The company said it will not provide guidance and won't provide updates on the review process, nor is there a guarantee of a transaction or other move as a result. There's no timeline for the strategic review. Kate Spade shares are up 17.6% for the past year while the S&P 500 index is up 24% for the same period.