default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Kate Spade Rises as Cleveland Research Recommends Buying Shares

Kate Spade & Co. rose the most in five months after an analyst at Cleveland Research Co. recommended buying the shares because of the brand’s growth potential.
By
  • Bloomberg

NEW YORK, United States — Kate Spade & Co., the handbag maker that's expanding into other product lines, rose the most in five months after an analyst at Cleveland Research Co. recommended buying the shares because of the brand's growth potential.

Consumers are becoming increasingly aware of Kate Spade, which may be in the “early-to-mid” stages of its growth cycle, Matthew Delly, a Cleveland Research analyst, wrote in a note to clients on Thursday.

Kate Spade has a “meaningful growth runway over the next several years and appears well positioned to utilize multiple distribution channels to engage the consumer,” Delly said.

Chief Executive Officer Craig Leavitt has set a goal of almost quadrupling Kate Spade's sales to $4 billion by expanding into fragrances, jewelry, watches and sunglasses in the mold of brands such as Ralph Lauren. Sales at the New York-based company rose 42 percent to $1.14 billion in the year through Jan. 3.

The shares rose as much as 11 percent to $22.18 in New York, the biggest intraday gain since Jan. 29. Kate Spade had slid 38 percent this year through Wednesday.

By Kevin Orland; editor: Leslie Patton.

© 2022 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from News & Analysis
Fashion News, Analysis and Business Intelligence from the leading digital authority on the global fashion industry.

The 10 themes in The State of Fashion 2023, the authoritative annual report from The Business of Fashion and McKinsey & Company, highlight how businesses can deploy realistic yet bold strategies to drive growth, even amid challenging times.




Tim Blanks sits down with Ziad Ahmed, chief executive of JUV Consulting and Stephanie Simon, the former head of community at Clubhouse to reflect on VOICES.


view more

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
How to Build a Profitable DTC Brand
© 2023 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions and Privacy policy.
How to Build a Profitable DTC Brand