Kate Spade & Co. (NYSE: KATE) on Tuesday posted its fourth-quarter earning results and provided a downbeat earnings and revenue guidance for the year.
The New York-based company reported a profit of $61.5 million, down from $126.5 million a year earlier. Earning for the quarter end in Jan 2 is 48 cents per share, compared with 99 cents a share a year earlier. Excluding discontinued operations and other items, earnings per share were 32 cents.
The result missed analysis’ estimates. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 33 cents per share.
Total revenue rose 7.6 percent to $429 million in the period, also falling short of analysis’s estimates. Six analysts surveyed by Zacks expected $443.9 million.
In addition to the disappointing four-quarter result, the clothing, handbag and accessories company also provided a soft outlook for 2016. According to The Wall Street Journal, Kate sees full-year sales of $1.39 billion to $1.41 billion for 2016; analysts polled by Thomson Reuters were expecting $1.45 billion. Kate anticipates per-share earnings in a range of 70 cents to 80 cents for 2016, down from analysts’ projection of 82 cents.
Kate Spade shares have rose 12 percent since the beginning of the year. The stock has fallen 42 percent in the last 12 months.
Kate Spade shares rise 3.94 percent to $20.60 at 11:05 A.M. in New York.