Kate Spade & Company, a US-based fashion retailer of women’s and men’s apparels and accessories, has announced the financial results for the first quarter ended April 1, 2017. The company’s net sales stood at US $ 271 million, down by 1.2 per cent compared to corresponding quarter last year.
In the reporting period, direct-to-consumer comparable sales of the fashion brand declined 2.4 per cent. Selling, general & administrative expenses totalled US $ 165 million as against US $ 152 million in the first quarter of last year. Gross profit of the company amounted to US $ 171.4 million, which was US $ 169.4 million in the previous year. It operating income declined in the mentioned period to US $ 6.8 million from prior year’s US $ 17.7 million. Net income in the first quarter stood at US $ 1.35 million, down from US $ 11.6 million.
Region wise, Kate Spade North America net sales were US $ 217 million which noted a down surged of 0.6 per cent. Whereas, Kate Spade International net sales totalled US $ 49 million.
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Craig A. Leavitt, Chief Executive Officer of Kate Spade & Company said, “Despite a challenging retail environment and the later Easter holiday, we achieved yet another quarter of double-digit eCommerce comparable sales growth, which helped offset softness in bricks and mortar stores. Against this backdrop, we delivered strong gross margin expansion while working to drive profitable growth across our categories and channels. At the same time, our Board of Directors, together with management, continue to evaluate strategic alternatives to further maximize value for our shareholders.”