Fifth & Pacific Cos. Inc. said the Kate Spade business saw adjusted earnings before interest, taxes, depreciation and amortization of about $130 million last year on sales of $742 million, according to preliminary figures. For 2014, sales are projected to grow 10 to 13 percent, pushing EBITDA to a range of $165 million to $175 million.
Comparable sales for Kate Spade’s stores rose 12 percent in the fourth quarter, while comps including both stores and e-commerce shot up 30 percent.
McComb said last year was “all about bringing Kate Spade to its full potential.”
The company gave a glimpse of its plans for the brand this year in a Securities and Exchange Commission filing late Thursday.
The newly dubbed Kate Spade & Co. intends to strengthen its “channel agnostic approach,” “enhance use of partnerships for margin expansion,” “increase investment in marketing” and further develop the Kate Spade Saturday brand.
Overall, that incudes opening 35 doors in North America this year, while opening another 55 in the rest of the world (up to 30 with partners) as well as a move into new categories and the introduction of e-commerce in Europe and Asia.
While growing rapidly, Kate Spade will also have to carry corporate costs, which the firm accounted for as adjusted losses before interest and so on of $65 million last year. That will fall modestly to losses of $50 million to $55 million this year.
With the exception of relatively small and profitable Adelington Design Group jewelry business, Kate Spade will be free of the last vestiges of the former Liz Claiborne Inc. portfolio, which included more than 30 brands at its height.
Lucky Brand, which Fifth & Pacific agreed to sell to Leonard Green & Partners for $225 million, drew adjusted EBITDA of $46 million from sales of about $520 million last year. That deal is expected to close in the first quarter. The company is also in the process of winding down its Juicy Couture business, the intellectual property of which was sold to Authentic Brands Group last year.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over the top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty