Kate Spade will launch buy online, pickup in store
March 7, 2016 10:35 AM
Luxury apparel and accessories manufacturer Kate Spade is planning on rolling out buy online, pick up in store service later this year.
CEO Craig Leavitt didn’t specify when buy online, pick up in store would be introduced or how many of the company’s 175 stores globally would participate. He told analysts on Kate Spade’s Q4 2015 call that during the holidays especially, the company had “great success with our buy online, ship from store program, which allows us to sell more full-price product while capturing incremental sales and managing our inventories efficiently,” according to a transcript from Seeking Alpha. Kate Spade launched its buy online, ship from store feature in Q4 to an unspecified number of stores.
Chief operating officer George Carrara said the company is looking at more ways to blur the lines between offline and online shopping as consumer preferences evolve.
“We know that regardless of which (way) she actually transacts, whether that’s online or in a store, that that journey is increasingly starting in the online space, which is certainly advantageous to us in terms of our ability to tell great stories and build engagement in the online experience,” he said.
Kate Spade, No. 178 in the Internet Retailer 2015 Top 500 Guide, did not break out e-commerce figures in its earnings report. Leavitt said on the call that online sales represent 20% of the company’s full-year revenue of $1.243 billion, which based on Internet Retailer calculations would mean $248.6 million.
Leavitt attributed some of the company’s online sales success to changes in its mobile shopping site.
“After our successful Q3 optimization of our mobile e-commerce site, we saw even greater improvements in our metrics for that platform versus desktop, as we continue engage with our customer on her terms,” he said. “Mobile traffic and conversion grew significantly faster and outpaced our total site,” though he declined to provide numbers.
For the fourth quarter ended Jan. 2, Kate Spade reported:
- Net revenue of $429.0 million, up 7.6% from $398.6 million last year.
- Sales from Kate Spade North America of $371.3 million, up 13.7% from $326.7 million last year.
- Sales from Kate Spade International of $52.1 million, down 13.3% from $60.1 million last year.
- Net income of $61.5 million, down 51.4% from $126.5 million last year.
For fiscal 2015 ended Jan. 2, Kate Spade reported:
- Net revenue of $1.243 billion, up 9.1% from $1.139 billion last year.
- Sales from Kate Spade North America of $1.031 billion, up 15.6% from $891.8 million last year.
- Sales from Kate Spade International of $188.2 million, down 11.9% from $213.6 million last year.
- Net income of $17.1 million, down 89.3% from $159.2 million last year.