(KATE – Snapshot Report) plunged, down over 20% in morning trading after the company reported disappointing quarterly profit thanks to weakening sales to tourists. Adjusted earnings were 19 cents per share, beating the 14 cents per share FactSet consensus. More than 26.1 million shares of Kate Spade were exchanged before the final bell yesterday afternoon, almost ten times the company’s average trading volume of 2.7 million shares per day. The stock holds the market capitalization of $1.97B along with 127.98M outstanding shares. The median 12-month price target of 14 analysts covering the company is $30.00, which suggests the stock could still gain more than 45 percent. Wall Street is expecting KATE to report revenue of $1.41 billion and earnings per share of 78 cents for the year.
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Stock analysts at SunTrust Robinson Humphrey have $18.00 target on Kate Spade (NYSE:KATE). Fewer people visited those stores, too, he said. The company owns and operated 409 stores to date, out of which 260 are owned, 121 are partnered, and 28 are licensee operated partnered stores. (NYSE:CIE) gained 6.23% and closed in the last trading session at $1.04. Kate Spade’s net sales climbed 13.7% to $320 million.
It predicted sales growth at stores open at least a year of “high single-digit to low double-digit”, down from “low to mid-teen”.
Direct-to-consumer comparable sales grew 4 percent during the period.
With Coach long regarded as the weakest of the three reasonably priced luxury brands, Wall Street has recently been warming up to it.
The company also announced the income from continuing operations of $25 million, or $0.19 per diluted share in the second quarter, increased $16 million from $9 million or $0.07 per share in the same period of 2015. The company has a 50 day moving average price of $20.88 and a 200-day moving average price of $21.57. (NASDAQ:REGN) is $468.05 while analysts mean recommendation is 2.20.
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Based on the second quarter results, the company adjusted the guidance for 2016. The company markets and sells its products under the AXCESS, KATE SPADE SATURDAY, JACK SPADE, MARVELLA, KATE SPADE, MONET, kate spade NY, and TRIFARI brand names. The forecast for net sales has also been cut, and the company is now expecting to bring in revenues in the range of $1.37-$1.40 billion, down from $1.39-$1.41 billion. The company reported $0.19 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.14 by $0.05.
