NEW YORK — Shares of Fifth & Pacific Cos. Inc. rose 12 percent on the New York Stock Exchange on Tuesday after the company posted gains in both net sales and net income for the fourth quarter and swung to the black for the full year.
For the three months ended Dec. 31, the company said net income more than tripled from a year ago to $185.2 million, or $1.48 a diluted share, from $57 million, or 47 cents. Net sales rose 22.3 percent to $426.9 million from $349.1 million.
For the full year, the company posted a profit of $73 million, or 59 cents a diluted share, against a loss of $74.5 million, or 68 cents, a year ago. Net sales rose 21.2 percent to $1.26 billion from $1.04 billion.
Shares of the company on Tuesday closed at $35.24.
McComb said, “The fourth quarter was, overall, a very strong quarter for the company. Kate Spade posted total revenue of $256 million, reflecting a growth rate of 48 percent versus fourth-quarter 2012.” He also noted that direct-to-consumer comp sales were up 30 percent, with adjusted earnings before interest, taxes, depreciation and amortization for the Kate Spade brand up 48 percent to $64 million. RELATED STORY: Kate Spade Gears Up for Growth >>
The company last year sold Juicy Couture and Lucky Brand Jeans. The Juicy sale to Authentic Brands Group for $195 million has closed, although Fifth & Pacific still handles some business operations for a brief period of time as part of the transition, while the sale of Lucky for $225 million to Leonard Green & Partners is expected to close before the end of March.
McComb disclosed that gross margins fell in the quarter, “down about 90 basis points versus 2012, driven by a higher promotion rate.”
Leavitt said, “We’ve heard many analysts asking whether or not the handbag and accessories markets are beginning to slow growthwise. The answer is no.…We saw nothing to buck that trend in the fourth quarter. In fact, handbags and small leather goods in Kate Spade gift accessories were our strongest growth categories this year overall and in the fourth quarter.”
He added that the top categories in the quarter after handbags were wallets, jewelry and apparel. In apparel, the top performers were outerwear, dresses and separates.
Leavitt said that last year the brand grew its “customer database by more than 55 percent and our social media following by a similar amount.” He noted that as the demographic breadth grows, about 60 percent of the base is under age 44. He also said that the company is committed to Kate Spade Saturday, which has a price point 50 percent below Kate Spade New York, because of its important reach to the Millennial customer.
In his closing comments, which included an extended quote from Charles Dickens about the best of times and the worst of times, McComb said, “So this call is literally my last activity here as the ceo of Fifth & Pacific Cos. Inc.…I’m leaving the company this afternoon, literally walking out the door shortly.…Not just as the former ceo but also as a shareholder, I am extremely excited about the future of this company. As Craig said, we’ve enjoyed explosive growth since 2007, but from my chair I see this business as having a relatively small footprint today with massive opportunity for expansion ahead in every region of the world.”
Analyst Ike Boruchow of Sterne Agee said of the Kate Spade brand’s performance, “This is a clear standout in today’s tough retail environment.”
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye