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Shares of the company, known for its quirky satchels and totes,
rose 2.4 percent in premarket trading on Tuesday.
The company forecast full-year 2016 net sales of $1.39
billion–$1.41 billion, below the average analyst estimate of
$1.45 billion.
Sales at stores open for at least 14 months, including online
sales, rose 14 percent. Analysts on average had expected a rise
of 11.4 percent, according to Consensus Metrix.
Kate Spade said it would enter India through a long-term
distribution and retail license agreement with Reliance Brands
Ltd, a unit of Indian conglomerate Reliance Industries Group.
The company's net income fell to $61.5 million, or 48 cents per
share, in the fourth quarter ended Jan. 2 from $126.5 million,
or 99 cents per share, a year earlier.
The year-earlier profit was boosted by a benefit of $88 million
due to a tax gain.
Excluding items, the company earned 32 cents per share, in line
with analysts estimate.
Net sales rose 7.6 percent to $429 million, missing the average
analyst estimate of $441.6 million.
(Reporting by Subrat Patnaik and Yashaswini Swamynathan in
Bangalore; Editing by Saumyadeb Chakrabarty)
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