On Thursday, Kate Spade & Company (NYSE: KATE) announced its earnings for the fourth quarter of 2016. In the statement, the company also considered strategic alternatives due to the negative effects of strong dollars.
For the fourth quarter of 2016, net sales increased 9.8% to $471 million, compared with the results of the same period last year. The results missed expectations of $472 millions. Comparable sales per square foot for the New York stores dropped to $1,557 in the last 12 months, which was partly due to the influence of foreign exchange rates. Net income increased 39% to $86 million, or $0.66 per share, in the fourth quarter, which surpassed the estimates of $0.34 per share.
However, Kate Spade’s results are better than its rivals. Comparable sales in the fourth quarter increased 9.3%, while Michael Kors dropped 6% and Coach increased 3%.
“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,” Craig A. Leavitt, the Chief Executive Officer of Kate Spade & Company, said in the statement.
“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,” he said.
In the statement, the company also confirmed that it was reviewing strategic alternatives to enhance shareholder value. The company will not disclose any updates regarding the progress, and will not provide forwarding-looking guidance at this time.
After the announcement, shares of Kate Spade rose 12.05% to $22.04 per share on Thursday.