According to Craig Leavitt, chief executive officer of American apparel group Kate Spade & Co., the group plans to open up to 12 Kate Spade New York stores in China in 2014.
At present, Kate Spade New York operates six stores in Hong Kong and 20 stores in mainland China, covering Beijing, Chengdu, Shenyang, and the East China region. Over the past six months, Kate Spade & Co. continued to deploy in the Chinese market. In September 2013, Kate Spade & Co., which was still known as Fifth & Pacific Cos. Inc., decided to establish its Kate Spade New York brand Asia Pacific headquarters, excluding Japan, in Hong Kong. The company appointed Joe Wong, former president of Gucci Greater China, as senior vice president, leading the Asia Pacific business.
In February 2014, Kate Spade, LLC purchased back the operating rights of Kate Spade New York in Southeast Asia from its Hong Kong agent Globalluxe for USD34 million. After the transaction, Kate Spade LLC will directly operate the Kate Spade New York stores in Hong Kong, Taiwan, and Macau.
By December 28, 2013, Kate Spade's net sales in the fourth quarter reached USD256 million, a year-on-year increase of 48%; its sales of individual stores increased by 30%; and its earnings before interest, taxes, depreciation and amortization increased by 49% from USD43 million to USD64 million.