Kate Spade & Company CEO Craig A. Leavitt publicised through an earnings call on Thursday that the clothing and accessories retailer will be launching a kidswear collection this year.
The announcement follows a profitable collaboration with multinational clothing retailer GAP releasing a trendy and popular limited-edition kidswear collection including accessories costing $20-$130, for the holiday season.
"Recently we saw early promise in children’s wear, including our collaboration with GAP Kids for the holiday season and we are excited for the debut of the Kate Spade New York children’s wear collection in the next few weeks," Leavitt stated.
The company’s 12 standalone brick-and-mortar stores, including Kate Spade Saturday and Jack Spade, are to be closed down by first half of this year even though the shares were up by 10%, according to the same announcement shared by Leavitt. Instead the company is preparing to focus on retail partnerships and e-commerce.
After downing shutters, the moderately-priced garments and accessories brand Kate Spade Saturday shall transfer its "key elements" to Kate Spade New York to be sold in its boutiques.
With plans of branching into menswear, Jack Spade will be altered to become a lifestyle brand encompassing sportswear, dress furnishings, tailored clothing and bags.
"We are early in our journey as Kate Spade & Company, and we see a clear path to becoming a four billion dollar business at retail. By taking these actions, we will be able to accelerate the fulfillment of our lifestyle brand vision, expanding our product categories and reaching customers in all facets of their lives, better positioning us to deliver on Kate Spade New York’s full potential," Leavitt added.
According to another announcement, Kate Spade & Company will be expanding its luxury collection to China, Taiwan, Macau and Hong Kong in collaboration with the subsidiary of The Lane Crawford Joyce Group — Walton Brown.