Kate Spade Shares Rally 17% On Report Company Is Exploring a Possible Sale

Shares of Kate Spade & Co. surged 17% in early afternoon trade, after the Wall Street Journal said the retailer is working with an investment bank to explore a sale of the company, citing people familiar with the matter. The company has come under pressure from activist hedge fund Caerus Investors, which in November, disclosed a stake. Shares are down 4.8% in the year so far, while the S&P 500 has gained about 11%.