The Sale Of Kate Spade Has Been Confirmed, And Share Prices Have Soared.

According to the world clothing shoes and hats net,

Co. (NYSE:KATE) yesterday confirmed that it had become a public secret sale rumor, pushing the group's stock price up 4.37% on Tuesday, 14, and further increased 12.9% to 22.22 dollars on Thursday, 16.

Kate Spade & Co. is responding.

In the fourth quarter earnings report, which was released one week ahead of time, it said it was working with Perella Weinberg Partners LP, a financial consultancy, to explore and assess strategic options for the best interests of the group and shareholders.

The group pointed out that the whole process did not have a specific timetable, nor did it guarantee that it would lead to pactions.

This Monday, the market just came out of the new development of Kate Spade & Co. selling.

DealReporter's latest report says that the group is awaiting the first round of bidding expected this month, and is alleged to be very likely to enter the Coach Inc. (NYSE:COH).

Executives from the two groups of Michael Kors Holding Ltd. (NYSE:KORS) acknowledged that they were actively considering acquisitions at the recent earnings performance meeting.

In November 14, 2016, Caerus Investors LLC, a small hedge fund in New York, publicly urged the sale of Kate Spade & sell, formerly known as Fifth Pacific Cos. Cos. and Liz Claiborne Inc., and 1 months later, it was reported that the group had opened the sale process.

At the same time, the performance of the holiday season has been mixed.

In the four quarter of December 31, 2016, Kate Spade & Co. was facing 9.3% faster growth than sales, but the same store sales dropped 1.5% after excluding e-commerce.

Shopping malls, department stores and high street passenger traffic decreased, the strength of the dollar weakened, passenger consumption and consumer preferences shifted to lower prices and lower gross handbags. Kate Spade & Co. and their peers were hurt.

According to the no fashion Chinese network data, in the recent holiday season, the same store sales of Michael Kors Holding Ltd. fell 6.9%, while the strong recovery Coach Coach brand rose 3% in North America and has risen 3 quarters.

During the period, net sales of Kate Spade & Co. Co. increased by 9.8% to US $470 million 900 thousand compared to the same period last year, slightly lower than the US $472 million expected by the market. Net sales in North America and the international market increased by 9.5% and 12.4% to 407 million US dollars and 59 million US dollars respectively.

Although November warned that fierce price competition in the holiday season would hurt earnings, net profits could still rise by 39.2% to 85 million 550 thousand dollars, compared with 61 million 460 thousand dollars in the previous year, and EPS from 0.48 dollars to 0.66 dollars.

The adjusted EPS US $0.41 is 20.6% higher than the market forecast of US $0.34.

Gross margins dropped 100 basis points to 59.2%, while operating margins increased 290 basis points to 20.1%.

In the 2016 fiscal year, the group's net sales totaled $1 billion 381 million 500 thousand, up 11.2% from the 1 billion 242 million 700 thousand in the 2015 fiscal year, and its net profit increased by nearly 8 times to $153 million 600 thousand, and the EPS rose from 0.13 to 1.19 dollars.

As of December 31st, the group has 448 stores worldwide, including 269 direct outlets.

Kate Spade & Co. chief executive Craig Leavitt said in the earnings report that the fourth quarter and the steady performance of the year show that they differentiate the advantages of the business model, and the group continued to gain market share, and also achieved strong growth.

Coach Inc. Coach and Michael Kors Holding Ltd. have all recently lowered their annual performance expectations, while Kate Spade Co. Co. said it would not provide the outlook for the current fiscal year 2017.

Analysts believe that compared with Coach Inc. Coach, Michael Kors Holding Ltd. has a higher chance of acquiring Kate Spade Co. Co., because the performance of the Michael Kors Kors, which is urgent, needs new brands to promote non organic growth, which can divert the attention of investors, while the reorganization of Coach's target is steadily higher. For example, Bobby Bolton, the lower end of the market, will dilute its brand value.

Marshal Cohen, chief retail analyst at NPD Group, believes that Michael Kors Holding Ltd. will continue to look for M & A opportunities even if it does not buy Kate Spade Spade / Co.. In the future, it is possible to acquire another lifestyle brand similar to that of the "R & D" brand to supplement the existing product supply, or to develop a new business in different directions.

At the time of the deadline, Kate Spade & Co. (NYSE:KATE) at 11:41 p.m. Eastern time AM $21.99, an increase of 11.79%. In the past 3 months, the stock has risen 27.9%, basically driven by selling rumors.

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