Kate Spade, A Luxury Luxury Brand, Has Been Disappointed By The Fall In Sales In The Past Six Years.

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Kate Spade & Co. (NYSE:KATE), one of the brand listed companies, released its worst quarterly performance in six years, and in the company's earnings report, it has not yet disclosed the market rumors that the market rumors are close to completion. The stock price of the company has plunged 8%.

As of the first quarter of 2017 fiscal year April 1, 2017, the same store recorded a 2.4% decline in sales.

The channel also plunged by 8.1%, which disappointed the market. This is the first time that the brand has seen a decline in same store sales since 2010. Despite the double-digit growth of the electricity supplier channel, it has not yet been able to make up for the downturn of the entity business.

The same store sales performance of Kate Spade & Co. showed a quarterly decline. In the fourth quarter of fiscal year 2016, the sales volume of the entity business in the same store had recorded a 1.5% decline, but the overall performance was covered by the growth of the electricity supplier. The sales volume of the same entity in the three quarter of last year was only flat.

The sales data of the same store are similar to those of rival Michael Kors Holding Ltd. (NYSE:KORS), which is also in the recession cycle, while Coach Inc. (NYSE:COH) SEHK:6388 (SEHK:6388), which first appeared in two companies, has recovered and is in the rising cycle, and is considered to be the most likely purchaser of Kate Spade & amp; Spade.

In the first quarter earnings report, Kate Spade & Co. did not provide further explanation for potential pactions. It merely reiterated that it was working with Perella Weinberg Partners LP, a financial consultancy, to explore and assess strategic options for the best interests of the group and shareholders.

The Group continues to point out that there is no specific timetable for the whole process and that no paction will be guaranteed.

In the first quarter earnings report, Kate Spade & Co. CEO Craig A. Leavitt can only advocate poor electricity supplier channels and gross margin performance.

The chief operating officer, George Carrara, added that Craig Leavitt said the gross profit margin improved by 140 basis points in the first quarter and the cash flow of $422 million.

As of the first quarter of April 1st, Kate Spade & Co. earned $271 million 200 thousand, a 1.2% decline compared with $274 million 400 thousand in the same period last year, much lower than the $298 million 900 thousand expected by Zacks. The group's net profit plunged 88.3% during the period from $11 million 636 thousand in the same period last year to $135.9, and earnings per share declined from 0.09 to 0.01 dollars, far less than the expected US $0.09.

In the first quarter, Kate Spade brand North America business recorded 217 million 400 thousand US dollars, a slight decrease of 0.6% compared with the same period last year. After adjustment, the EBITDA EBITDA recorded a profit of 22 million 788 thousand US dollars, which is equivalent to 10.5% of the EBITDA profit margin, a 70 basis point decrease compared with the same period last year. The international business recorded a 48 million 976 thousand US dollar income in the first quarter, unchanged from the same period last year. After adjustment, EBITDA recorded a 8 million US dollar, EBITDA profit margin 15.9%, and fell by 160 basis points.

Kate Spade & Co. did not explain the decline in specific profits in the earnings report, or even canceled the regular earnings analyst meeting, which the market considered was "escape" to respond to the rumors of the paction.

In the first quarter, the gross profit margin of Kate Spade & Co. was 63.2%, compared with 61.8% in the same period last year.

As of April 1st, Kate Spade North America and international stores increased by 1 to 177 and 94 respectively.

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