Aug 8, 2013
Fifth & Pacific second quarter sales miss estimate on Juicy Couture slide
Aug 8, 2013
Fifth & Pacific reported lower-than-expected second-quarter results as its Juicy Couture urban fashion brand continued to languish.
Fifth & Pacific reported sales of $382 million for the quarter ended June 29, while Wall Street expected $392.7 million, according to Thomson Reuters.
Sales of Juicy Couture fell 10.7 percent, even as Fifth & Pacific Chief Executive William McComb said the brand was "nearing a turning point." At Lucky Brand, sales fell 2 percent.
The big bright spot again was the higher-end kate spade handbags and accessories brand. Sales soared 65.3 percent in the quarter.
Sources have told Reuters Fifth & Pacific is shopping Lucky and Juicy and hired investment banks Centerview Partners and Perella Weinberg earlier this year.
While McComb didn't directly address a potential sale of any business, he said in a statement the company is looking for "the best path forward with our brand portfolio to maximize shareholder value."
The company reported the net quarterly loss narrowed to $43.1 million, or 36 cents per share, from $52.1 million, or 48 cents a year earlier. The adjusted loss from continuing operations was 12 cents per share, worse than the 10 cents analysts expected.
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