KATE

Kate Spade & Company

Consumer


Presented:09/15/2014
Price:$30.85
Cap:$3.91B
Current Price:$18.49
Cap:$2.38B

Presented

Date09/15/2014
Price$30.85
Market Cap$3.91B
Ent Value$4.15B
P/E Ratio20.83x
Book Value$0.55
Div YieldN/A
Shares O/S126.90M
Ave Daily Vol2,860,000
Short Int6.29%

Current

Price$18.49
Market Cap$2.38B
Kate Spade & Company, together with its subsidiaries, primarily designs and markets a range of apparel and accessories. It operates through KATE SPADE, Adelington Design Group, and JUICY COUTURE segments. The company offers apparel, handbags, briefcases, travel bags, small leather goods, tabletop products, legwear, bedding, stationery, jewelry, apparel, footwear, optics, fragrances, electronics cases, fashion accessories, beauty, and home décor products. It offers its products under the KATE SPADE SATURDAY, JACK SPADE, LIZ CLAIBORNE, MONET, TRIFARI, KENSIE, LIZWEAR, LIZ CLAIBORNE NEW YORK, and JUICY COUTURE brands. The company sells its products through its own retail and outlet stores, as well as to department store chains and specialty retail store customers. Kate Spade & Company operates approximately 118 specialty retail stores, 51 outlet stores, and 43 concessions stores. It is also involved in e-commerce and licensing operations. The company was formerly known as Fifth & Pacific Companies, Inc. and changed its name to Kate Spade & Company in February 2014. Kate Spade & Company was founded in 1976 and is based in New York, New York.

Publicly traded companies mentioned herein: Coach Inc (COH), Kate Spade & Co (KATE), Michael Kors Holdings Ltd (KORS), Ralph Lauren Corp (RL)

Highlights

The presenter is bullish on shares of Kate Spade (KATE), citing its distinct brand, good growth momentum, expanding margins, and room to take share in competitive handbags and accessories markets as reasons to be optimistic. The company has cut out many fringe and underperforming businesses, and is now very early in the life cycle with a long runway for growth. He estimates a mid-$40s target by 2016 is achievable, potentially rewarding shareholders with 50% upside.

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Idea Discussion

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