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NEW YORK, United States — Handbags and accessories maker Kate Spade & Co reported better-than-expected quarterly sales at established stores, driven by demand for its Kate Spade New York line of products.
Shares of the company, known for its quirky satchels and totes, rose 2.4 percent in premarket trading on Tuesday.
The company forecast full-year 2016 net sales of $1.39 billion–$1.41 billion, below the average analyst estimate of $1.45 billion.
Sales at stores open for at least 14 months, including online sales, rose 14 percent. Analysts on average had expected a rise of 11.4 percent, according to Consensus Metrix.
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Kate Spade said it would enter India through a long-term distribution and retail license agreement with Reliance Brands Ltd, a unit of Indian conglomerate Reliance Industries Group.
The company's net income fell to $61.5 million, or 48 cents per share, in the fourth quarter ended Jan. 2 from $126.5 million, or 99 cents per share, a year earlier.
The year-earlier profit was boosted by a benefit of $88 million due to a tax gain.
Excluding items, the company earned 32 cents per share, in line with analysts estimate.
Net sales rose 7.6 percent to $429 million, missing the average analyst estimate of $441.6 million.
By Subrat Patnaik and Yashaswini Swamynathan; editor: Saumyadeb Chakrabarty.
