9/25/10

Liz Claiborne Inc., owner of kate spade new york is (hopefully) turning around!

What is going to happen to ksny if Liz Claiborne goes under?  My beloved kate spade is making a substantial earnings contribution to the "mother company"!  I was reading the earnings statement  for second quarter from Liz and while it is going down, ksny is doing great!  This is a quote I cut and pasted from the report:


Net sales for kate spade were $42 million, a 24.9% increase compared to 2009, primarily driven by increases in specialty retail, e-commerce, wholesale apparel and wholesale non-apparel. Store counts and key operating metrics are as follows:

  • We ended the quarter with 39 specialty stores and 29 outlet stores, reflecting the net closure over the last 12 months of 9 specialty stores;
  • Average retail square footage in the second quarter was approximately 139 thousand square feet, a 9.9% decrease compared to 2009;
  • Sales per square foot for comparable stores for the latest twelve months were $591; and
  • Comparable store sales increased 15.2% in the second quarter.
  Yay, kate spade new york!   I hope you do well enough to help Liz Claiborne Inc. out of this downward spiral of debt ($590 million) and if not, someone buys you and doesn't change a thing.  I have hope in the leadership at Liz and ksny.  I know they are all doing their best to help the recovery.  Liz is even closing all their outlet stores and have made a deal with JC penny and QVC to sell the Liz Claiborne brand. I found this Reuters article on the turnaround at Liz. I hope the working atmosphere is okay and not stressed out because of the money problems.  I wouldn't want any grey clouds to overshadow the colorful world of kate spade new york!!!
xoxoxo,

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