NEW YORK, NY / ACCESSWIRE / August 15, 2018 / Shares of Tapestry Inc., which owns Kate Spade and other brands, saw its shares pop after the company saw a bump in sales of Kate Spade in the fourth quarter, after the designer?s death. Shares of Truett-Hurst also sailed higher on news that it has sold its wholesale wine business to Precept Brands LLC.
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Truett-Hurst, Inc. shares closed up 40% on about 11.5 million shares traded yesterday. The company announced this week that it has sold its wholesale wine business, which consists of the company's wholesale bottled wine inventory, brands, supplies and bulk wine inventory used for the Company's "control label" wine brands and related intellectual property, to Precept Brands LLC. The transaction is expected to result in net proceeds of approximately $15.9 million for the Company. The company also said that Paul Dolan will be the company's interim Chief Executive Officer on November 1st. Current CEO Phillip Hurst will become Chief Innovation Officer at Precept Brands but will remain as a board member. Mr. Dolan remarked, "I am very excited to jump back into the management of the Truett-Hurst Family Winery. Over the last 10 years our hospitality team has done an amazing job building relationships with the community and our club members and we are looking forward to expanding and enhancing our great service. As a winegrower I have a particular warm spot in my heart for vines that have unique flavors, power and finesse and together with our phenomenal winemakers Ginny Lambrix of VML and Ross Reedy of Truett Hurst we can't wait to dive into the 2018 harvest."
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Tapestry, Inc. shares gained around 12% by Tuesday's close with trading volume skyrocketing at roughly 13.7 million shares traded. The parent company of Kate Spade, Coach and Stuart Weitzman reported fiscal fourth quarter earnings on Tuesday that beat estimates. EPS at $0.60 on revenue of $1.48 billion was higher than the analyst expectation of EPS of $0.57 on revenue of $1.47 billion. The company reported EPS of $0.50 on $1.13 billion in revenue in the same period last year. Following the death of designer Kate Spade, Tapestry had seen a bump in the sales of Kate Spade products and merchandise, which includes handbags, accessories, clothing, shoes and home goods. For the full year the company is expecting sales in the range of $6.1 billion to $6.2 billion for fiscal 2019. Analysts on average had been expecting $6.08 billion. The company also forecast profit of $2.70 to $2.80 per share for the year, slightly below the average estimate of $2.82 per share. CEO Victor Luis stated, "In its first year within Tapestry, Kate Spade delivered double digit earnings per share accretion, despite the strategic pullback in online flash and wholesale disposition."
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