Kate Spade Grows Sustainably
Net sales increased 26% for the quarter and reaffirms full year 2015 guidance.
Net sales for the third quarter of 2015, excluding sales for wind-down operations, were $275 million, an increase of $57 million, or 26.1% compared to the third quarter of 2014, adjusting 2014 net sales for wind-down operations and excluding the impacts of changes in foreign currency exchange rates and 2015 strategic initiatives. Refer to the table entitled “Reconciliation of NonGAAP Net Sales Information” for a reconciliation from GAAP results. Reported net sales for the third quarter of 2015 were $277 million, an increase of $27 million, or 10.7%, from the comparable 2014 period.
Craig A. Leavitt, Chief Executive Officer of Kate Spade & Company, said: “Our third quarter results, including industry-leading comparable sales increases, underscore that the diversified foundation we have created is driving sustainable growth in sales and profitability, even with our deliberate pullback in a number of key sales and promotional events. We continue to introduce new product categories and enter new markets in a thoughtful way to attract and retain customers.”
George Carrara, President and Chief Operating Officer of Kate Spade & Company, added: “We are pleased with our strong performance this quarter, which was driven by a strategic omnichannel approach. In addition, the meaningful Adjusted EBITDA expansion we have generated for the first nine months of 2015 positions us well to achieve our guidance for at least 200 basis points of Adjusted EBITDA margin improvement for the full year.”
For the third quarter of 2015 on a GAAP basis, income from continuing operations was $5 million, or $0.04 per diluted share, compared to $3 million, or $0.02 per diluted share, for the third quarter of 2014. Adjusted diluted earnings per share from continuing operations in the third quarter of 2015 were $0.06, compared to flat in the third quarter of 2014.