Apparel retailer and NYSE listed, Kate Spade & Company reported a surge of 30% in fiscal third quarter ending October 4, 2014 revenues, from a year ago quarter.
Kate Spade said net sales from continuing operations for the third quarter of 2014 totalled $250 million, up $58 million or 30.0% from the third quarter of 2013.
“Sales were primarily driven by rise in the Kate Spade North America and Kate Spade International segments, partially offset by a decline in sales in the Adelington Design Group segment,” the retailer said.
Total Kate Spade comparable direct-to-consumer net sales, including e-commerce, rose 15.2% in the third quarter of 2014.
“Sales per square foot for comparable stores for the latest twelve months were $1,507,” it added.
In the third quarter of 2014, the apparel retailer also posted a turnaround in income by posting a net income from a net loss in the prior year quarter.
GAAP income from continuing operations reached $3 million, or $0.02 per diluted share, compared to a loss from continuing operations of $14 million, or $0.12 per share, for the third quarter of 2013.
In the reporting quarter, gross profit as a percentage of net sales went up to 62.8%, up from 61.4% in the same period of 2013.
Kate Spade attributed the improvement to benefit, of the shift of the Fourth of July holiday and its semi-annual sale into second quarter of 2014, and controlled promotional activity in the quarter.
Selling, general & administrative (SG&A) expenses in the quarter under review too drove up by $38 million, or 32.3%, to $154 million, from corresponding quarter of last year.
Third quarter of 2014 interest expense, net declined drastically to just $2 million, from $12 million in the third quarter of 2013.
Debt at the end of the quarter too fell by a massive amount of $120 million or 22.68% from a year earlier period, to $409 million.
The retailer ended the third quarter of 2014 with $123 million in cash and cash equivalents and marketable securities, compared to $7 million at the end of the third quarter of 2013.
Adjusted EBITDA, net of foreign currency transaction adjustments nearly doubled from $11 million to $21 million for the third quarter of 2014.
CEO Craig Leavitt said, "Looking ahead, we will continue to progress along expansion of both, product category and geographically, while prioritizing to expand margins and generate solid results." (AR)
