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.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
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@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)