NEW YORK (TheStreet) -- Shares of Kate Spade & Co. (KATE) are climbing higher by 7.41% to $41.70 in pre-market trading on Tuesday, after the company reported its net loss of -$4.04 million, or -3 cents per share for the 2014 second quarter, narrowed from a loss of -$43.14 million, or -36 cents per share, for the year ago period.
Adjusted earnings per share were 5 cents for the most recent quarter, compared to an adjusted loss per share of -8 cents for the 2013 second quarter, while analysts polled by Thomson Reuters expected the company to break even.
Kate Spade, which designs and markets clothing and accessories under a number of brands, said net sales for the 2014 second quarter increased 48.7% to $266 million versus $179 million for the 2013 second quarter, as analysts expected revenue of $237.83 million.
Separately, TheStreet Ratings team rates KATE SPADE & CO as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate KATE SPADE & CO (KATE) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, premium valuation and weak operating cash flow."