Jan. 29--Two retail brands on Wednesday announced plans to close some of their stores, illuminating the tough terrain retailers are up against as they try to sell online and at their bricks-and-mortar locations.
Early Wednesday morning, luxury brand Kate Spade announced plans to close its moderately priced, casual-attire Kate Spade Saturday stores as well as all of its Jack Spade men's stores. In all, the company will close 28 locations, including its Jack Spade store on Oak Street in Chicago's Gold Coast neighborhood.
Later Wednesday morning, veteran sportswear clothing brand Jones New York said it planned to close its 127 Jones New York Outlet stores and discontinue its wholesale business during 2015. The privately held company said it planned to "pursue strategic alternatives" for the Jones New York brand. Jones New York is owned by New York-based private equity firm Sycamore Partners. Included in the list of closings is the Jones New York Outlet on Fullerton Avenue in Lincoln Park.
New York-based Kate Spade said it planned to focus on growing its eponymous higher-end brand into a $4 billion business, according to Chief Executive Officer Craig Leavitt. To do that, it will blend the Kate Spade Saturday brand into Kate Spade New York and sell Jack Spade on the Web and through third-party sellers. The company plans to grow Jack Spade beyond its current offering of bags and sportswear to include tailored clothing and dress furnishings. The shift in focus will cost Kate Spade about $25 million to $30 million, the company said in a statement.
The news came as the company said it expects its 2014 net sales to increase more than 40 percent to between $1.13 billion and $1.14 billion. Wall Street expects about $1.1 billion in sales. For 2015, Kate Spade said it expects revenues to be in the range of $1.2 billion to $1.27 billion.
The news sent Kate Spade shares rising Wednesday.
crshropshire@tribpub.com
Twitter @corilyns
