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.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)