William L. McComb, chief executive officer, said Thursday, “We are continuing our work to identify the best path forward with our brand portfolio to maximize shareholder value and will provide an update as and when appropriate.”
During the conference call to Wall Street analysts, McComb’s reference to the bidding process was just, “We have no news to report relating to our portfolio strategy today.”
As for earnings, while the company posted improved results, it still missed Wall Street estimates for both losses per share and sales for the quarter.
For the three months ended June 29, the net loss was $43.1 million, or 36 cents, compared with a year-ago loss of $52.1 million, or 48 cents. The adjusted loss per share from continuing operations for the second quarter was 12 cents, versus a 9 cent loss a year ago. Wall Street’s consensus estimate was an adjusted loss of 10 cents for the current quarter.
Total sales for the quarter rose 13.4 percent to $382 million from $336.9 million. That too was lower than the $392.7 million in sales Wall Street analysts were expecting for the current quarter.
For the six months, the net loss narrowed to $95.3 million, or 80 cents a diluted share, on a 15.3 percent net sales gain to $753.8 million.
As it did in the first quarter, Kate Spade continued to remain the bright spot in Fifth & Pacific’s portfolio. Its direct-to-consumer comparable sales in the second quarter jumped 27 percent. In contrast, Lucky Brand was up 2 percent in direct-to consumer comps, while Juicy Couture was down 4 percent for the period.
The Kate Spade business continues to expand in all channels and geographies, with total sales up 65.3 percent during the quarter to $166.8 million.
The ceo said that the company opened 14 stores globally under the core Kate Spade New York concept and two Kate Spade Saturday units. In addition, the company is “on track to open 12 new stores in the third quarter and 18 new stores in the fourth quarter,” he noted.
Success in the domestic specialty channel included strong reaction to occasion dresses, cardigans and knit dresses. Also doing well were small leather goods and small fashion bags, along with jewelry and the “successful launch of the new fragrance, Live Colorfully,” the ceo said.
Total net sales at Lucky Brand fell 2 percent to $109.4 million, driven primarily by the timing impact of wholesale shipments discussed in the last quarter. McComb said that the international expansion is under way, with the brand “launching this fall in Indonesia, South Africa, the Middle East, Venezuela, Chile, Panama and Colombia.”
Total net sales at Juicy Couture were down 11 percent to $93.7 million, and while the apparel business was up slightly from a year ago, accessories remains a problem area.
The company said it continues to “forecast adjusted EBITDA [earnings before interest, taxes, depreciation and amortization], net of foreign currency transaction adjustments, in the range of $120 million to $150 million.”
Shares of Fifth & Pacific rose 4.1 percent to close at $25.01 in trading Thursday on the New York Stock Exchange.
For its next men’s wear collection, @roberto_cavalli will show as a special guest at #PittiUomo, running from June 12-15. The brand, which has Florence in its roots, will relaunch its men’s wear collection, which will be presented separately from women’s wear for the first time since Paul Surridge was appointed creative director in May. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
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Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.