E-commerce helps fuel 41.7% year-over-year growth for Kate Spade & Co.
March 3, 2015 03:13 PM
Executives with luxury apparel and accessories manufacturer Kate Spade say improving the brand’s international e-commerce footprint is a key initiative when it comes to capitalizing on net sales gains of 41.7% in fiscal 2014.
The company is planning to launch an e-commerce site in France during the second half of 2015, CEO Craig Leavitt told analysts during the brand’s Q4 2014 earnings call. The initiative follows the successful launch of Kate Spade’s UK site in November.
Traffic was up 80% year-over-year on the brand’s e-commerce site in Japan, which helped fuel international sales gains of 46.9% year-over-year. Kate Spade is No. 176 in the Internet Retailer 2014 Top 500 Guide.
“We take a very omnichannel approach to our business, a channel agnostic approach to our business,” Leavitt told analysts according to a transcript of the call obtained from Seeking Alpha.
To that end, the company announced in January that it will invest more heavily in e-commerce efforts to promote its menswear label, Jack Spade, in 2015.
The company will shift more toward e-commerce and retail partnerships to try to expand Jack Spade’s customer base because “this model better leverages the distribution network of its strong retail partners and allows us to expand Jack Spade's e-commerce platform,” Leavitt said.
Also on Tuesday, the company announced it will expand its home décor and home furnishing offerings, which will be sold online at KateSpade.com.
For the fourth quarter of fiscal 2014 ending Jan. 3, Kate Spade & Co., which does not break out online sales, reported:
- Net sales of $398.57 million, up 44.7% from $275.43 million during the same period in 2013.
- Sales for Kate Spade North America of $326.75 million, up 50.5% from $217.16 million during the same period in 2013.
- Sales for Kate Spade International of $60.07 million, up 56% from $38.51 million during the same period in 2013.
For the 12 months ending Jan. 3, Kate Spade & Co. reported:
- Net sales of $1.139 billion, up 41.8% from $803.371 million in fiscal 2013.
- Sales for Kate Spade North America of $891.77 million, up 49.2% from $597.75 million in fiscal 2013.
- Sales for Kate Spade International of $213.58 million, up 46.9% from $145.40 million in fiscal 2013.