May '15
Reported net sales for the first quarter of fiscal 2015 were $255 million, an increase of $32 million, or 14.2 per cent from the comparable 2014 period.
However, net sales for the first quarter of fiscal 2015, excluding sales for wind-down operations, were $240 million, up $53 million, or 28.4 per cent as against the first quarter of fiscal 2014.
According to a Kate Spade press release, these figures however, exclude impacts of the 53rd week, changes in foreign currency exchange rates and the 2015 strategic initiatives.
First quarter of fiscal 2015 direct-to-consumer comparable sales growth stood at 9 per cent or 6 per cent excluding ecommerce over the previous fiscal first quarter.
Gross profit as a percentage of net sales was 62 per cent, excluding the impact of wind-down operations and was favourably impacted by timing.
On a reported basis, gross profit decreased to 60.6 per cent in the first quarter of fiscal 2015 compared to 61.2 per cent in the comparable fiscal 2014 period.
SG&A expenses stood at $137 million or 57.4 per cent of net sales, excluding the results of wind-down operations and expenses associated with streamlining activities.
SG&A in the reporting quarter also includes a $26 million charge to terminate contracts with the Company's former joint venture partner in China.
On a reported basis, SG&A expenses expanded to $192 million or 75.1 per cent of net sales in the first quarter of 2015 from $164 million or 73.2 per cent of net sales in the first quarter of fiscal 2014.
Loss on settlement of note receivable was $10 million in the first quarter of 2015 and represented a prepayment discount on the seller note receivable the Company received in connection with the sale of Lucky Brand.
Interest expense, net declined to $3 million in the first quarter of fiscal 2015 as against $10 million in the first quarter of 2014.
Net debt too dipped steeply to $199 million at the end of the first quarter of fiscal 2015 from $267 million from the prior fiscal first quarter, mainly due to prepayment of the Lucky Brand seller note.
CEO Craig Leavitt said, "Our channel-agnostic approach and emphasis on improving quality of sale continue to drive brand awareness, customer engagement and product demand."
"Looking ahead, we will continue to focus on driving profitability, accelerating growth across geographies and product categories and broadening our customer base,” he added.
“We are confident in the strength of our business model and are making significant progress toward becoming a $4 billion business at retail," Leavitt observed. (AR)
Fibre2fashion News Desk - India
Must ReadView All
Apparel/Garments | On 25th Apr 2018
India mulls new schemes for jobs, textile clusters
India is mulling over alternative schemes for jobs and manufacturing...
Apparel/Garments | On 25th Apr 2018
Making sustainability affordable is a big challenge
In a lot of instances, being sustainable comes with an additional...
Textiles | On 25th Apr 2018
Formosa to set up petrochemical plant in Louisiana
Formosa Petrochemical Corporation has selected St. James Parish in...
Interviews View All
Top executives
Fashion houses, India
With technology, it has become easier to ensure IPR
Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar
‘Blending cultures is the true beauty of fashion, where one’s imagination...
Amrit Sethia
SOIE
‘The intimatewear category in India is slowly becoming trend-sensitive.’
Kusumgar Corporates is a leading manufacturer of technical textiles and...
Conceived in Europe and curated in New Delhi, NeceSera is a...
Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....
Larry L Kinn
Suominen Corporation
Larry L Kinn, Senior Vice President - Operations Americas of Suominen...
Silke Brand-Kirsch
Schlegel und Partner
Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...
Iago Castro Asensio
RCfil Distribuciones S.L.
Iago Castro Asensio, International Business Manager of RCfil...
Divvya and Nidhhi Gambhir
Walnut
<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...
Sonam and Paras Modi's Sva Couture is synonymous with head-turning...
Judy Frater
Somaiya Kala Vidya
Among the many honours showered on Frater, including Fulbright and Ford...
Leave your Comments
Recommended
Want to know what happened in the textile world this week? Watch now!
news category
Related Categories:
Do you think the sustainability space has the needed tools and resources available for a business to lead change?
Yes No SkipActive Poll
Do you see sustainability as a route to business growth?
YesTotal Votes: 103
Do you think adopting a sustainable approach will be a profitable move for your business?
Yes No SkipActive Poll
Do you think the sustainability space has the needed tools and resources available for a business to lead change?
YesTotal Votes: 103
Do you want the world to know about your sustainability journey and your business’ environmental footprint?
Yes No SkipActive Poll
Do you think adopting a sustainable approach will be a profitable move for your business?
YesTotal Votes: 103
Thanks for your valuable feedback. Claim your free latest sustainability e-book.
Active Poll
Do you want the world to know about your sustainability journey and your business’ environmental footprint?
YesTotal Votes: 103
E-News Insight
Latest News Update in Your Mail Box.
