Kate Spade (KATE) reported earnings on Thur 16 Feb 2017 (b/o)

** charts before earnings **

** charts after earnings **

• 2 days later:

Kate Spade beats by $0.06, reports revs in-line; co in the process of reviewing strategic alternatives & will not be providing guidance at this time :

• Reports Q4 (Dec) earnings of $0.41 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.35; revenues rose 9.8% year/year to $471 mln vs the $473.29 mln Capital IQ Consensus.
  • Kate Spade North America net sales for the fourth quarter of 2016 were $407 million, an increase of $35 million, or 9.5% compared to the fourth quarter of 2015.
  • Kate Spade International net sales for the fourth quarter of 2016 were $59 million, an increase of $6 million, or 12.4% compared to the fourth quarter of 2015.
  • Adelington Design Group net sales for the fourth quarter of 2016 were $6 million, an increase of 2.3% compared to the fourth quarter of 2015.
• "Our solid fourth quarter and fiscal year performance demonstrate the strength of our differentiated business model, as we continued to gain market share and deliver strong growth despite a challenging retail environment. In 2016, we further strengthened our handbag portfolio, introduced new categories to our casual ready-to-wear classifications, and thoughtfully expanded our global store base, opening 52 net new owned and partner-operated stores. At the same time, we remain committed to maximizing value and are exploring strategic alternatives that are in the best interests of our Company and shareholders."
• Review of strategic alternatives:
  • Kate Spade & Company's Board of Directors, together with management and in consultation with Perella Weinberg Partners as its financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison as its legal counsel, is conducting a process to explore and evaluate strategic alternatives to further enhance shareholder value. The Board plans to proceed in a timely manner, but has not set a definitive timetable for completion of this process. There can be no assurance that this review process will result in a transaction or other strategic alternative of any kind. The Company does not intend to disclose developments or provide updates on the progress or status of this process or discuss with investors the Company's results of operations until it deems further disclosure is appropriate or required. Additionally, no forward-looking guidance will be provided at this time.