Kate Spade 1Q15 Earnings Call Notes

posted in: Notes | 0

Still seeing promotional environment driven by departments stores

“So, first, relative to the environment that exists out there today, I think it’s fair to say that we are still seeing a promotional environment generally driven by the department stores. I think what we have continued to see is various department store groups, matching other sales from other retailers. There’s been an extension of key events. So this is certainly seeming to be an ongoing issue and that is why we have made building quality of sale such an important component of our 2015 activities.’

Going to be restricting participation in promotional activity

“we are going to be extracting ourselves from those sales going forward. So really what you’ll see for the balance of the year is extracting ourselves from most of that promotional activity, as it relates to the department store world. And I think in the past we’ve talked about us being kind of in the middle of the pack as it relates to promotional activity and I think what you are seeing already and certainly will see even to a greater degree as we move through the balance of the year is moving to the back of the pack and that is a really important part of our growth strategy overall.”

Going to have to be some retraining of the customer

“certainly there is going to be a retraining of the customer and that’s something that’s not going to be instantaneous. That said, we’re pleased with the early results of our promotional posture pull back”