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About Kate Spade Holdings LLC

Kate Spade Holdings is a manufacturer and designer of consumer's product such as handbag, wallets, clothing, shoes, jewelry, accessories, personalization, home, and gifts. Kate Spade operates freestanding flagship, specialty retail and outlet stores as well as concession shop-in-shops. These stores are located in regional shopping centers, metropolitan areas throughout the world and established outlet centers. Kate Spade has some 420 stores, including nearly 215 stores in North America and more than 205 stores in international operations.

Operations

The Kate Spade segment includes global sales primarily of kate spade new york brand products to customers through Kate Spade operated stores, including the Internet, sales to wholesale customers, through concession shop-in-shops and through independent third party distributors. Kate Spade accounts for about 25% of Tapestry's total revenue.

By products, women's accessories accounts for about 55% of total sales while women's handbags and other products accounts for 45% of combined revenue.

Geographic Reach

 Kate spade is based in New York and has North America distribution in Westchester, Ohio. Its regional management offices are located in China, and Japan.

During fiscal 2020, Kate Spade products were manufactured primarily in Vietnam, mainland China and Cambodia. Kate Spade had two vendors, one located in Vietnam and one located in Cambodia, who individually provided over 10% of the brand's total purchases (or approximately 35% in the aggregate).

Sales and Marketing

Kate Spade brand's products are sold in approximately 1,000 wholesale and distributor locations, primarily in the US, Canada and Europe. The most significant wholesale partnerships primarily include sales of kate spade new york products. Kate Spade products are also available on these customers' websites. The wholesale business for Kate Spade brand comprised more than 10% of total segment net sales for fiscal 2020. Kate Spade has developed relationships with a select group of distributors who sell Kate Spade products through travel retail locations and in certain international countries where Kate Spade does not have directly operated retail locations.

Financial Performance

Net Sales decreased 15.9% or $217.3 million to $1.15 billion in fiscal 2020. Excluding the impact of foreign currency, net sales decreased 16.0% or $218.4 million. This decrease is primarily due to a decline of $190.5 million in retail sales mainly in North America due to full and partial store closures related to the Covid-19 outbreak. Furthermore, wholesale sales declined $23.4 million due to lower demand as a result of the Covid-19 outbreak.

Strategy

Key strategies include:

Crystallizing the Brand's Purpose and Returning to a Position of Strength by fulfilling its promise as a lifestyle brand representing joy, optimism and color, amplified through unique, best-in-class storytelling on a multi-category lifestyle platform

Instilling a Laser Focus on the Customer across all touchpoints, and fostering a community of women emotionally connected to and inspired by the Kate Spade brand story and values

Reenergizing and Growing Handbags and Leathergoods by reintroducing non-negotiable brand elements, rebuilding the core offering, and capitalizing on a new Signature platform

Leaning into Digital Strength by modernizing and creating engaging brand experiences across all of its digital platforms, fully unleashing the power of Kate Spade community and brand

Capturing Market Share and Improving Profitability by acquiring, re-engaging, and retaining customers, driving top and bottom line growth

Company Background

Kate Spade Holdings Started in 1993 and founder is Kate Brosnahan. a former accessories editor at mademoiselle, set out to design the perfect handbag. debuting with just six silhouettes, she combined sleek, utilitarian shapes and colorful palettes in an entirely new way. Therefore, kate spade new york was born.

In 2007, spade turned the reins to design powerhouse kate spade & company (formerly known as liz claiborne, inc.). Shortly after, deborah lloyd took the helm as president and chief creative officer with an aim to broaden the line while honoring the rich history.

Kate Spade Holdings LLC

2 Park Ave FL 8
New York, NY 10016-5613
Phone: 1 (212) 354-4900

Firm Stats

Employer Type: Publicly Owned
Muse: Marena Carnaghi
Chairman: Nancy J. Karch
Interim CEO: Victor Luis
Employees (This Location): 420
Employees (All Locations): 3,900

Major Office Locations

New York, NY

Other Locations

Roseville, CA
North Bergen, NJ
Ottawa, Canada
West Vancouver, Canada