Aug 12 Handbag and accessory maker Kate Spade &
Co warned gross margins for the year would fall as it
faces increased competition and weak sales in its Kate Spade
Saturday brand, sending its shares down as much as 23 percent.
The company said on a post-earnings conference call on
Tuesday that it expects 2014 gross margins to decline 125-175
basis points from a year earlier.
Kate Spade Saturday sells apparel, handbags and jewelry at
almost half the price than its upmarket kate spade new york
The company also said it may take longer than expected to
meet its goal of 25 percent EBITDA margin for the Kate Spade
Kate Spade's shares initially rose to a seven-year-high of
$42.87 in early trading after the company reported
better-than-expected sales and profit for the second quarter
ended July 5.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by