Fifth & Pacific adjusted EBITDA shoots up 37.4%

28 Feb '14

4 min read

Inclusive of the results of Lucky Brand, which was still part of our brand portfolio in the fourth quarter, but excluding the results of Juicy Couture, full year 2013 adjusted EBITDA was $126 million, consistent with our recently provided guidance.

As discussed in our early January pre-announcement, Kate Spade performed well in a very promotional environment in the fourth quarter, delivering direct to consumer comparable sales growth of 30%. We also continue to be pleased with the wind down of our Juicy Couture operations, which is proceeding according to plan."

Mr. McComb concluded: "Today, I formally hand over the CEO role to Craig Leavitt. I leave the Company very confident about its future as this new senior management team of Craig, Chief Creative Officer Deborah Lloyd and President and COO George Carrara is well positioned to deliver on Kate Spade's significant growth opportunities.

We expect that this team will drive Kate Spade to reach its full potential and we are optimistic about the brand's ability to deliver sizeable growth in 2014 and beyond. Reflecting this exciting time, the Company's name changes tomorrow to Kate Spade & Company and our stock begins trading under the new ticker (NYSE:KATE)."

Craig A. Leavitt, Chief Executive Officer of Kate Spade & Company, Inc. said: "Bill's vision and leadership have helped fuel the rapid growth of the Kate Spade brand. Last year, we marked the brand's 20th anniversary, and we look forward to our brand's next chapter, especially the next five years, which will be powered by the resources and focus coming out of our monobrand focus.

We face many growth opportunities now as Kate Spade & Company across channels of distribution, product categories and geographies. This momentum is underscored by our recently announced acquisition of our Southeast Asia distributor relationship, enabling us to accelerate growth in this key market."

Mr. Leavitt concluded: "Even with all of the bad weather, I'm happy with the business trends in the first quarter-to-date, which are consistent overall with our expectations. We are seeing continued strong performance in the key handbag/small leather goods category, in particular. We can also re-affirm our previously guided range of $115 to $125 million for adjusted EBITDA for fiscal 2014, which includes Kate Spade, the Adelington Design Group and Corporate."

Fifth & Pacific Companies

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