Kate Spade Profits Soar Despite Competitive Environment

Kate Spade shares are on fire Tuesday. The handbag maker's quest to become a global lifestyle brand appears to be coming true. Profit came in at 5 cents a share. Analysts were expecting Kate Spade to break even, but it did much better. Revenue came in at $266 million, also way better than estimates. North America did the best among all global regions. Sales jumped 55% compared to a year earlier, which is encouraging because a handful of luxury handbag and clothing makers have been struggling. CEO Craig Leavitt said, "Despite a more promotional retail environment, Kate Spade & Company had another strong quarter, with sales increases coming across both our North American and International segments." TheStreet's Julia Sun has details from New York.