The Juicy Problem At Fifth & Pacific Overshadows Kate Spade's Value

After the close on Monday, Fifth & Pacific Companies, Inc (FNP) warned that earnings would not meet expectations due to weakness with the Juicy Couture brand. With the stock trading down nearly 12%, the market is missing the surging results at kate spade.

The company designs and markets a portfolio of retail-based, premium, global lifestyle brands including Juicy Couture, kate spade, and Lucky Brand. In addition, the Adelington Design Group markets private brand jewelry and the company licenses the Liz Claiborne New York brand. It also owns 18.75% of Mexx.

While the other divisions continue hitting on all cylinders, the Juicy Couture brand continues to struggle. Management had expected Juicy to turn around by the 2H of 2012, but the rewarding turnarounds at kate spade and Lucky Brand also took longer than originally expected.

Read the full article at Seeking Alpha.

Disclosure: Long FNP. Please review the disclaimer page for more details. 


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