Net sales for the fourth quarter of 2014 ended January 3, 2015 at US based and NYSE listed apparel marketer, Kate Spade & Company zoomed 44.7 per cent year on year.
Net sales for the fourth quarter of 2014 totaled to $399 million, up a massive $123 million, or 44.7 per cent from the comparable fourth quarter of 2013.
Kate Spade said sales were primarily driven by 50.5 per cent sales hike in the Kate Spade North America segment and 56.0 per cent revenue growth in the Kate Spade International segment.
However, fourth quarter of 2014 direct-to-consumer comparable sales growth grew slower at 28 per cent from a year ago quarter or 21 per cent, when excluding the ecommerce business.
Adjusted EBITDA, net of foreign currency transaction adjustments reached $77 million or $85 million, excluding charges related to earlier announced brand actions from $55 million in fourth quarter of 2013.
“Comparable adjusted EBITDA, net of foreign currency transaction adjustments amounted to $57 million for the corresponding quarter of the previous year,” Kate Spade informed in a press release.
For the fourth quarter of 2014 on a GAAP basis, income from continuing operations was $126 million or $0.99 per diluted share as against $29 million or $0.23 per share for the fourth quarter of 2013.
Adjusted diluted earnings per share from continuing operations in the reporting quarter were $0.24, compared to $0.13 in the fourth quarter of 2013.
Net sales for the full year 2014 were $1.139 billion, again a steep climb of $335 million or 41.7 per cent from 2013, including an $18 million benefit associated with the additional week in 2014.
Excluding the benefit of the additional week, full year 2014 direct-to-consumer comparable sales growth was 24 per cent or 22 per cent excluding ecommerce.
Adjusted EBITDA, net of foreign currency transaction adjustments nearly doubled to $147 million for 2014 compared to $77 million for 2013.
In 2014, the apparel marketer recorded income from continuing operations of $77 million or $0.60 per compared to a loss from continuing operations in 2013 of $32 million, or $0.27 loss per share.
Adjusted earnings per diluted share from continuing operations for 2014 were $0.25 compared to an adjusted loss per share from continuing operations of $0.10 in 2013.
CEO Craig Leavitt said, “In 2014, we marked our first year as an independent company and our impressive growth reflects the powerful momentum of Kate Spade & Company.”
He added, “We have demonstrated a disciplined approach to managing our investments as we further focus on the long-term growth potential of our kate spade new york brand."
"We are rapidly becoming a powerful, global, multichannel lifestyle brand across women's, men's, children and home and remain focused on a partnered approach to expanding our footprint,” he noted.
He concluded, “We continue to advance along our two axes of growth; product category as well as geographic expansion, as we apply the right resources to targeted initiatives to maximise profitability."
