So what: As you can see from the chart above, the majority of the drop came toward the end of the month. While there was no major news pressuring the fashion label, the decline seemed to be a continuation of May's poor performance, as the stock dropped 25% in that month due to a first-quarter earnings report that was weaker than expected. Kate Spade stock had been pumped up nearly three times its value in the three years prior, and shares have been tumbling since the report.
Now what: Kate Spade is still showing off healthy growth; sales jumped 28% in its most recent quarter. However comparable sales have slowed to the single digits, and even the usually robust direct-to-consumer segment increased just 9% in its last quarter. The recent pullback in the stock seems to be mostly valuation-based, but the stock is still pricey at a P/E close to 40 based on this year's estimated earnings.
Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends Coach. The Motley Fool owns shares of Coach and Michael Kors Holdings. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Kate Spade & Company is engaged in the design and marketing of a range of accessories and apparel. It operates through three segments. The KATE SPADE North America segment consists of the Company's kate spade new york and JACK SPADE brands in North America. The KATE SPADE International segment consists of the Company's kate spade new york and JACK SPADE brands in international markets, which operates principally in Japan, Asia (excluding Japan), Europe and Latin America). The Adelington Design Group segment primarily consists of exclusive arrangements to supply jewelry for the LIZ CLAIBORNE and MONET brands. In addition, the Adelington Design Group segment serves J.C. Penney Corporation, Inc. (JCPenney) through exclusive supplier agreements for the LIZ CLAIBORNE and MONET jewelry lines. As of December 31, 2016, it operated 98 the United States Specialty Retail Stores; 35 Foreign Specialty Retail Stores; 65 the United States Outlet Stores; 17 Foreign Outlet Stores, and 54 Concessions.
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Shares gapped up nearly 15% to close at 22.56 in the stock market today, hitting the highest level since May, after retaking the key 200-day moving average in recent days. The stock enjoyed a more than 23% pop on Dec. 28, the day the Journal story surfaced.
Apparel and accessories maker Ralph Lauren (RL) announced some key executive hires, two weeks after the CEO left over "different views" from that of the founder. Ralph Lauren stock finished 0.9% lower.
This specific account is listed as Kate Spade NYC, and does not include the brand Jack Spade. Still, it's hard to find an account that continually loses followers, especially since it saw spikes in popularity. We here at Thinknum don't like to be armchair psychologists for companies, but the entire story surrounding her untimely death might be combining with poor sales and a changing retail enviornment to sink Tapestry's stock price.
Score another point for athletic apparel retailers. In contrast to the declines posted by handbag companies, Nike shares rose 30 percent in 2015, while Under Armour's stock climbed 19 percent. Analysts expect players in this category to continue to outperform in the new year.
In 2015, shares of Macy's slid 47 percent, Nordstrom dropped 33 percent and Kohl's stock declined 22 percent. Among the specialty set,Gap shares fell 41 percent, and Urban Outfitters dropped 35 percent. 781b155fdc