NYSE listed and apparel marketer Kate Spade & Company inked a 20 per cent hike in year over year sales for the three months to July 4, 2015.
Net sales for the second quarter of fiscal 2016, excluding sales for wind-down operations, were $273 million, up $46 million or 20 per cent over the fiscal ago quarter.
Reported net sales for the quarter under review totaled $281 million, an increase of $15 million or 5.7 per cent from the comparable period of fiscal 2015.
For the reporting quarter, gross profit as a percentage of net sales was 61.6 per cent, excluding the impact of wind-down operations and 61.0 per cent on a reported basis.
“As against this, gross profit as a percentage of net sales was 58.6 per cent in the fiscal ago quarter, which included the unfavourable impact of the Kate Spade Saturday inventory liquidations,” Kate Spade added.
Second quarter of fiscal 2016 SG&A expenses amounted to $143 million, or 52.3 per cent of net sales, excluding the results of wind-down operations and expenses associated with streamlining activities.
On a reported basis, SG&A expenses increased to $154 million, or 54.8 per cent of net sales in the second quarter of fiscal 2016 from $146 million, or 54.9 per cent of net sales in the previous fiscal's second quarter.
“Interest expense, net declined to $5 million in the second quarter of fiscal 2016, compared to $6 million in the second quarter of fiscal 2015,” the apparel marketer informed.
Net debt too decreased to $171 million as on July 4, 2015 from $232 million at the end of the second quarter of fiscal 2015, primarily due to the prepayment of the Lucky Brand seller note.
For the second quarter of fiscal 2016, on a GAAP basis, income from continuing operations was $9 million, or $0.07 per share.
This compares with a loss from continuing operations of $14 million, or $0.11 per share in the prior fiscal second quarter.
Adjusted diluted earnings per share from continuing operations in the second quarter of 2015 stood at $0.08 as against $0.05 per share in the second quarter of fiscal 2015.
CEO Craig Leavitt said, "Our second quarter results demonstrate our focus on building a diverse business model that will drive sustainable, long-term growth.”
“Our strategy is centered on key factors that differentiate Kate Spade & Company, including our lifestyle brand vision, partnered approach to expansion and efforts to build quality of sale,” he too added.
“Our success with new product introductions shows that we are resonating with our existing customers, as well as attracting new customers to our brand across our four category pillars,” Leavitt observed. (AR)
Fibre2Fashion News Desk – India