Kate Spade's Stock Drops After Sales Miss, Downbeat Outlook

Kate Spade & Co.'s stock dropped 4.1% in premarket trade Tuesday, after the women's accessories seller missed fiscal fourth-quarter sales expectations and provided a downbeat full-year outlook. For the quarter ended Jan. 2, earnings fell to $61.5 million, or 48 cents a share, from $126.5 million, or 99 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 32 cents, matching the FactSet consensus. Revenue rose 14% to $428.96 million, which was below the FactSet consensus of $441 million, as both North America and international sales fell shy of expectations. For 2016, sales are expected to be $1.385 billion to $1.410 billion, and EPS is seen at 70 cents to 80 cents; the FactSet consensus is for sales of $1.44 billion and EPS of 82 cents. The stock has climbed 12% year to date through Monday, while the S&P 500 has lost 5.5%.