Kate Spade reports shaky first quarter results
Kate Spade & Co announced its results for the first quarter of 2017, the fiscal period ending April 1— and like many other retailers, the results point to a struggle.
Direct-to-consumer comparable sales dropped by 2.4% (-8.1% if the e-commerce channel is taken out of the equation) and net sales for the first quarter of 2017 were $271 million—a decrease of three million dollars, or 1.2%, compared to the first quarter of 2016. The company’s sales in North America were down 0.6%, while international business was level.
Per the results, the physical stores are the root of the loss. “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 brick-and-mortar stores,” said Craig A. Leavitt, Chief Executive Officer of Kate Spade & Co. “At the same time, our Board of Directors, together with management, continue to evaluate strategic alternatives to further maximize value for our shareholders.”
But Kate Spade & Co is among several other retailers like H&M, Claire’s Stores, Inc., Bebe and numerous others that are struggling to stay ahead of the perpetually challenging retail game and has yet to negotiate a final sale of the company after receiving an offer from Coach Inc. On the positive side, the company is only down three stores (448 versus 452) from a year ago.
Copyright © 2023 FashionNetwork.com All rights reserved.