Kate Spade & Company Announced Results for The First Quarter of 2014

Kate Spade & Company announced results for the first quarter of 2014. For the first quarter of 2014 on a GAAP basis, loss from continuing operations, which includes the continuing operations of the Juicy Couture Brand and excludes Lucky Brand, was ($55) million, or ($0.44) per share, compared to a loss from continuing operations of ($40) million, or ($0.33) per share, for the first quarter of 2013.

Highlights:
-Reports Q1 Kate Spade segment direct to consumer comparable sales growth of 22% excluding the benefit of a 14th week in the quarter
-Kate Spade segment sales increased $76 million, or 54%, to $217 million in Q1 2014 compared to Q1 2013 including the benefit of a 14th week in the quarter
-Reports Q1 2014 comparable adjusted EBITDA of $17 million compared to $8 million for the first quarter of 2013
-Completes refinancing of High Yield Notes, resulting in annualized cash interest savings in excess of $20 million
-Reaffirms full year 2014 adjusted EBITDA guidance of $115 million - $125 million

Net sales for the first quarter of 2014, which includes the continuing operations of Juicy Couture and excludes Lucky Brand, were $328 million, an increase of $82 million, or 33.5%, from the comparable 2013 period. Adjusted loss per share from continuing operations for the first quarter of 2014 was ($0.06), compared to ($0.16) for the first quarter of 2013.

Adjusted EBITDA, net of foreign currency transaction adjustments, which includes the continuing operations of Juicy Couture and excludes Lucky Brand, was $17 million for the first quarter of 2014 and ($4) million for the first quarter of 2013.

Net sales on a comparable basis that excludes Juicy Couture and Lucky Brand were $224 million in first quarter of 2014, an increase of $67 million, or 42.9%, from the comparable 2013 period.

Comparable adjusted EBITDA, net of foreign currency transaction adjustments, which excludes Juicy Couture and Lucky Brand, was $17 million for the first quarter of 2014 and $8 million for the first quarter of 2013.

Craig A. Leavitt, Chief Executive Officer of Kate Spade & Company, said, "Overall, Kate Spade & Company's performance in the first quarter of 2014 continued to be very strong. For total Kate Spade & Company, comparable net sales were $224 million in the first quarter of 2014, a 43% increase to last year. The Kate Spade segment performed well in the first quarter, delivering an increase of $76 million or 54% to last year, including the benefit of a 14th week in the quarter, with growth across all geographies and categories.  Direct to consumer growth was fueled by both door expansion, including two global flagships in Houston and Tokyo, and strong direct to consumer comparable salesgrowth of 22%, excluding the impact of the extra week.