Kate Spade earnings fall short of forecasts

March 02 01:44 2016

Kate Spade & Co. (KATE) on Tuesday reported fourth-quarter net income of $61.5 million. The New York-based company said it had net income of 48 cents per share. Earnings, adjusted for non-recurring gains, came to 32 cents per share.

The results fell short of Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 33 cents per share. The clothing, handbag and accessories company posted revenue of $429 million in the period, also falling short of Street forecasts. Six analysts surveyed by Zacks expected $443.9 million.

For the year, the company reported profit of $17.1 million, or 13 cents per share. Revenue was reported as $1.24 billion. Kate Spade expects full-year earnings to be 70 cents to 80 cents per share, with revenue in the range of $1.39 billion to $1.41 billion. Kate Spade shares have climbed 12 percent since the beginning of the year. The stock has fallen 42 percent in the last 12 months.