The accessories and handbag maker reported strong growth in quarterly sales. Fred Katayama reports.
Kate Spade bagging big bucks. The accessories and handbag maker swung to a quarterly profit from a loss last year. And its sales shot higher despite the strong dollar and a pullback on discounting. Handbags and small leather goods boosted sales in its largest market, North America. Sales grew even faster overseas. Kate Spade is investing in its online business and looking to launch new product categories like furniture. It is also planning to open new locations in China and Europe and expand into Latin America. Kate Spade's shares vaulted higher. But they've lost a third of their value this year. Mizuho analyst Betty Chen says while investors remain concerned with soft spending within the handbag market, Kate has gained market share and grown sales. The report comes after rivals Michael Kors and Coach wowed Wall Street with their surprisingly strong earnings.