NEW YORK (TheStreet) --Shares of Kate Spade & Co. (KATE) are higher by 15.73% to $30.39 in mid-morning trading on Thursday, after the company reported its third quarter 2014 income from continuing operations was $3 million, or 2 cents per diluted share, compared to a loss of $14 million, or a loss of 12 cents per share for the year ago period.
The luxury retailer of designer handbags, clothing, and accessories said its net loss for the most recent quarter narrowed to $9.1 million, or a loss of 7 cents per share, compared to a loss of $16.9 million, or a loss of 14 cents per share for the 2013 third quarter.
Kate Spade's net sales grew by 30% year-over-year to $250.4 million.
Analysts polled by Thomson Reuters expected the company to post earnings of 2 cents per share, on revenue of $254 million for the quarter.
"This quarter, we made great strides against our strategic plan for growth. We achieved impressive topline growth results both in the U.S. and globally...We also exceeded our comp growth expectations this quarter and continue to drive these results while remaining focused on building quality of sale," said company CEO Craig Leavitt.
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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, premium valuation and relatively poor performance when compared with the S&P 500 during the past year."
You can view the full analysis from the report here: KATE Ratings Report