...Continued Strong Comps Growth: Kate Spade & Company's (Kate Spade) annual comparable store sales (comps) including e-commerce have been positive since 2010. Comps were strong at 24.4% in 2014 (excluding a 53rd week) and are expected to come in at 11% in 2015, driven by both traffic and conversion. Fitch expects comps could moderate to the 5%¡ 6% range in 2016, which is still above peers, as the recent slowdown in luxury spending may spill over into aspirational spending. Margin Benefits from Premium Focus: Since shedding its lower margin brands (Liz Claiborne/Juicy Couture) in 2013, Kate Spade's EBITDA margin has expanded to approximately 13% in 2014 from 7.7% in 2013, and grew to 14.7% for the LTM ending Oct. 3, 2015. Fitch Ratings believes the focus on the premium kate spade new york brand will allow EBITDA margin to sustain in the 15%¡16% range. International operations should also positively affect margins as that segment begins to mature and contribute to company EBITDA. Improving...
