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Kate Spade swings to 2Q profit on revenue boost; stock up in premarket trading

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NEW YORK — Kate Spade & Co. on Wednesday reported a second-quarter profit, helped by a boost in sales in North America.

The sales increase and a boost in the low end of the company's earnings projections buoyed investors, who drove Kate Spade's stock up more than 8 percent in premarket trading.

The clothing, handbag and accessories company reported profit of $8.5 million, or 7 cents per share, up from a loss a year ago. Earnings, adjusted for non-recurring costs and to account for discontinued operations, were 8 cents per share.

The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 11 cents per share.

The New York-based company's revenue rose 5.7 percent to $281.1 million in the period, which also missed Street forecasts. Four analysts surveyed by Zacks expected $294 million.

Sales in North America rose 13.1 percent to $236 million and international sales fell 17.3 percent to $41 million.

Kate Spade shares have dropped 35 percent since the beginning of the year. The stock has dropped 45 percent in the last 12 months.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on KATE at http://www.zacks.com/ap/KATE

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Keywords: Kate Spade, Earnings Report

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