Kate Spade & Company
A challenging retail landscape, as well as continuing tourist headwinds, caused Kate Spade & Company (KATE) to miss expectations in the second quarter ended July 2. While net sales increased 13.7% to reach $319.69 million, direct-to-consumer comparable sales grew 4 percent, and net income nearly tripled to hit $24.6 million or 21 cents per share. This was worse than Wall Street anticipated and the company cut its full-year forecast. Shares fell more than 19 percent in early trading Wednesday.
Etsy (ETSY), the Brooklyn, New York-based multi-channel marketplace, said Tuesday that revenue rose to 39.4% to $85.3 million in the second quarter ended June 30, as its community expanded to include 1.7 million active sellers and 26.1 million active buyers. Despite its net loss widening 15.1% to $7.3 million, the company raised its 2016 guidance and now expects revenue growth to between 25 percent and 28 percent. Etsy stock is up 73.12% year-to-date.
As expected, HanesBrands (HBI) on Tuesday reported a 3.2% decline in net sales to $1.47 billion for the quarter ended July 2, as a result of comparisons with strong performance in the year-ago period that included expanded shelf space for product launches. By segment, innerwear sales decreased 4.7%, activewear was down 3.6% and direct-to-consumer fell 3.7%. International sales were up 1.9%. But while profits rose 35 percent to $128.1 million and earnings per diluted share increased 47.8% to 34 cents, shares dropped 3.39% Tuesday and were down a further 2.57% in early trading Wednesday.