LENDER PRESENTATION

March 27, 2014

2014 Kate Spade & Company, All rights Reserved.

Cautionary Statement Regarding Forward-
Looking Information
Statements contained in, or incorporated by reference into, this presentation, future filings by us with the Securities and Exchange Commission ("SEC"), our press releases, and oral statements made by,
or with the approval of, our authorized personnel, that relate to our future performance or future events are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such
statements are indicated by words or phrases such as "intend," "anticipate," "plan," "estimate," "target," "aim," "forecast," "project," "expect," "believe," "we are optimistic that we can," "current visibility
indicates that we forecast," "contemplation" or "currently envisions" and similar phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these
expectations may not prove to be correct or we may not achieve the financial results, savings or other benefits anticipated in the forward-looking statements. These forward-looking statements are
necessarily estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties, some of which may be beyond our control, that could cause actual results to
differ materially from those suggested by the forward-looking statements, including, without limitation: our ability to complete the transition to a mono-brand business centered on the KATE SPADE family of
brands, including our ability to successfully complete the transition of our management and operations; our ability to operate as a mono-brand business and to successfully implement our long-term
strategic plans; general economic conditions in the United States, Asia, Europe and other parts of the world, including the impact of income tax changes and debt reduction efforts in the United States;
levels of consumer confidence, consumer spending and purchases of discretionary items, including fashion apparel and related products, such as ours; issues related to our current level of debt, including
an inability to pursue certain business strategies because of the restrictive covenants in the agreements governing our debt and our potential inability to obtain the capital resources needed to operate and
grow our business; restrictions in the credit and capital markets, which would impair our ability to access additional sources of liquidity, if needed; changes in the cost of raw materials, labor, advertising and
transportation which could impact prices of our products; our ability to expand into markets outside of the US, such as India, Russia, South East Asia, and South America, as well as continued expansion in
China, Japan and Brazil, including our ability to promote brand awareness in our international markets, find suitable partners in certain of those markets and hire and retain key employees for those
markets; our ability to maintain targeted profit margins and levels of promotional activity; our ability to expand our retail footprint with profitable store locations; our ability to achieve the business plan of our
KATE SPADE SATURDAY business, including our ability to attract new customers; our ability to implement operational improvements and realize economies of scale in finished product and raw material
costs in connection with growth in our business; our ability to expand the KATE SPADE family of brands into new product categories; our ability to successfully implement our marketing initiatives; risks
associated with the sale of the LUCKY BRAND business, including our ability to collect the full amount of principal and interest due and owing pursuant to a three year note issued by Lucky Brand
Dungarees, LLC, an affiliate of Leonard Green & Partners, L.P., to us as partial consideration for the purchase of the LUCKY BRAND business and our ability to comply with our transition service
requirements; risks associated with the sale of the JUICY COUTURE intellectual property to Authentic Brands Group, including our ability to complete and implement the transition plan for the JUICY
COUTURE business in a satisfactory manner and to manage the associated transition costs, the impact of the transition plan and the announced future plans for the JUICY COUTURE brand on our
relationships with our employees, our major customers, vendors and landlords and unanticipated expenses and charges that may occur as a result of the transition plan and the announced future plans for
the JUICY COUTURE brand, such as litigation risks, including litigation regarding employment and workers' compensation; our dependence on a limited number of large US department store customers,
and the risk of consolidations, restructurings, bankruptcies and other ownership changes in the retail industry and financial difficulties at our larger department store customers; whether we will be
successful operating the KATE SPADE business in Japan and the risks associated with such operation; risks associated with decreased diversification of our business as a result of the reduction of our
brand portfolio to the KATE SPADE and Adelington Design Group businesses; our ability to anticipate and respond to constantly changing consumer demands and tastes and fashion trends, across
multiple brands, product lines, shopping channels and geographies; our ability to attract and retain talented, highly qualified executives, and maintain satisfactory relationships with our employees; our
ability to adequately establish, defend and protect our trademarks and other proprietary rights; risks associated with the dependence of our Adelington Design Group business on third party arrangements
and partners; the impact of the highly competitive nature of the markets within which we operate, both within the US and abroad; our reliance on independent foreign manufacturers, including the risk of
their failure to comply with safety standards or our policies regarding labor practices; risks associated with our buying/sourcing agreement with Li & Fung Limited, which results in a single third party foreign
buying/sourcing agent for a significant portion of our products; risks associated with our arrangement to continue to operate the Ohio distribution facility with a third party operations and labor management
company that provides distribution operations services, including risks related to increased operating expenses, systems capabilities and operating under a third party arrangement; a variety of legal,
regulatory, political and economic risks, including risks related to the importation and exportation of product, tariffs and other trade barriers; our ability to adapt to and compete effectively in the current
quota environment in which general quota has expired on apparel products, but political activity seeking to re-impose quota has been initiated or threatened; our exposure to currency fluctuations; risks
associated with material disruptions in our information technology systems, both owned and licensed, and with our third party ecommerce platforms and operations; risks associated with privacy breaches;
risks associated with credit card fraud and identity theft; risks associated with third party service providers, both domestic and overseas, including service providers in the area of e-commerce; limitations on
our ability to utilize all or a portion of our US deferred tax assets if we experience an "ownership change"; and the outcome of current and future litigation and other proceedings in which we are involved.
The list of factors above is illustrative, but by no means exhaustive. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All subsequent written and oral
forward-looking statements concerning the matters addressed in this presentation and attributable to us or any person acting on our behalf are qualified by these cautionary statements. Forward-looking
statements are based on current expectations only and are not guarantees of future performance, and are subject to certain risks, uncertainties and assumptions, including those described in this
presentation (including those under the caption Cautionary Statement Regarding Forward-Looking Statement), and in the Companys Annual Report on Form 10-K for the year ended December 28, 2013
filed with the SEC, including in the sections entitled Item 1A-Risk Factors and Statement on Forward Looking Statements. We may change our intentions, beliefs or expectations at any time and without
notice, based upon any change in our assumptions or otherwise. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, estimated or projected. In addition, some factors are beyond our control. We undertake no obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
2
Agenda & Presenters
Topic Presenter

I. Transaction Overview BofA Merrill Lynch

II. Introduction

III. Business Overview Craig Leavitt CEO

IV. Credit Highlights

V. Historical Financial Performance George Carrara President, COO & CFO

3
I. Transaction Overview

4
 Executive Summary
2013 marked a year of transformation for Kate Spade & Company (the Company)
Sold the intellectual property of Juicy Couture brand
Sold Lucky Brand to an affiliate of Leonard Green & Partners, L.P.
Combined estimated net proceeds from the sale transactions: $370 - $380 million (1)
Kate Spade continued its market leading performance
2013 Kate Spade Brand Net Sales and Segment Adjusted EBITDA of $743 million and $130 million (2), respectively
Direct-to-consumer comp sales +28% in FY2013 (3) and Net sales +60% in FY2013
Completed major steps in achieving omni-channel capability in U.S.: strengthened e-commerce presence and established new POS
system
Successfully transitioned U.S. distribution center and logistics business model
Strengthened capital structure via equitizing convertible bonds and executing 2 sale-leaseback transactions on administrative properties
Kate Spade is seeking to raise a new $400 million Term Loan B. The Company recently launched a refinancing of its existing ABL Revolving
Credit Facility, which will be down-sized from $350 million to $200 million (collectively, the Transaction)

Net Proceeds from the Transaction will be used to redeem the Companys existing 10.500% Senior Secured Notes due 2019 and repay existing
ABL Facility borrowings

Giving effect to the Transaction, Total Leverage and Lease-Adjusted Leverage will be 4.5x and 5.6x, respectively, based on FY2013
Comparable Adjusted EBITDA of $91 million (4) and FY2013 rent expense of $44 million

The Kate Spade trademark is valued in excess of $1.0 billion (5) providing an implied loan-to-priority collateral value of 38.6% reflecting the new
$400 million Term Loan B

Lender commitments are due April 3, 2014 at 5pm EDT

(1) Net proceeds are subject to finalization of restructuring costs and other transitional-related costs, including the expected receipt of $51 million for the Juicy Couture 5th Avenue Flagship Store.
(2) Segment Adjusted EBITDA is as reported in the Companys 2013 Annual Report on Form 10-K and is used by the Company as the measure of segment profitability and excludes certain corporate
costs. For more information about Segment Adjusted EBITDA, see Note 18 to the financial statements for FY2013 included in such Annual Report. Kate Spade Segment Adjusted EBITDA of $130
million in 2013 excludes: (i) $27.2 million of depreciation and amortization expense, asset impairment charges and losses on asset disposals and (ii) $2.0 million of charges due to streamlining
initiatives, brand-exiting activities and acquisition related costs.
(3) Inclusive of eCommerce.
(4) FY2013 Comparable Adjusted EBITDA is a non-GAAP performance measure that the Company uses to measure the performance of its business after giving effect to the dispositions of the Juicy
Couture and Lucky Brand businesses and certain corporate cost savings. A reconciliation of Comparable Adjusted EBITDA to consolidated operating income can be found on Slide 55. Comparable
Adjusted EBITDA includes a benefit of $3 million of incremental Adjusted EBITDA related to the acquisition of existing KATE SPADE businesses in Southeast Asia from Globalluxe that was completed in
February 2014, as if such acquisition had been completed on the first day of the Companys fiscal year that ended on December 28, 2013.
(5) Brand valuation from VRC Report dated 3.21.2014.
5
 Transaction Overview
Sources & Uses Pro Forma Capitalization

Sources Amount Pro Forma Capitalization

New ABL Revolver ($200) -- FY2013
New Term Loan B $400 Actual Adj. Pro Forma
Cash from Balance Sheet 2 Cash and Cash Equivalents $130 (2) $128
Total Sources $402
(1)
Existing ABL Revolver ($350) 3 (3) --
Uses Amount New ABL Revolver ($200) -- -- --
Redeem 10.500% Senior Secured Notes due 2019 $372 New Term Loan B -- 400 400
(2)
Repay Existing ABL Revolver 3 10.500% Senior Secured Notes due 2019 372 (372) --
Estimated Call Premiums, Fees and Expenses 27 Capital Leases 9 -- 9
Total Uses $402 Total Secured Debt / Total Debt $384 $409
Market Capitalization (3.25.14) 4,668 4,668
Total Capitalization $5,052 $5,077

Credit Statistics
(3)
FY2013 Comparable Adjusted EBITDA $91 $91
FY2013 Comparable Adjusted EBITDAR 135 135

Total Debt / FY2013 Comparable Adj. EBITDA 4.2x 4.5x

Net Debt / FY2013 Comparable Adj. EBITDA 2.8x 3.1x
(4)
Total Adj. Debt / FY2013 Comparable Adj. EBITDAR 5.5x 5.6x
(4)
Net Adj. Debt / FY2013 Comparable Adj. EBITDAR 4.5x 4.7x
(5)
Implied Loan-to-Priority Collateral Value ($1B Trademark Valuation) -- 38.6%

Note: $ in millions, except where noted

(1) $19.1 million in letters of credit outstanding at December 31, 2013.
(2) Reflects principal balance, excluding unamortized issuance premium.
(3) FY2013 Comparable Adjusted EBITDA is a non-GAAP performance measure that the Company uses to measure the performance of its business after giving effect to the dispositions of the Juicy Couture and
Lucky Brand businesses and certain corporate cost savings. A reconciliation of Comparable Adjusted EBITDA to consolidated operating income can be found on Slide 55. Comparable Adjusted EBITDA
includes a benefit of $3 million of incremental Adjusted EBITDA related to the acquisition of existing KATE SPADE businesses in Southeast Asia from Globalluxe that was completed in February 2014, as if
such acquisition had been completed on the first day of the Companys fiscal year that ended on December 28, 2013. 6
(4) Based on 8 times rent expense methodology.
(5) Brand valuation from VRC Report completed 3.21.2014.
 Attractive Valuation Coverage

($ in Millions)

$5,000 $4,668
$4,500
$4,000
Approx 2.6x 11.7x
$3,500
Valuation Coverage
$3,000
$2,500
$2,000
$1,500 >$1bn
$1,035
$1,000
$400
$500
$0
(1) (2)
Trademark Value (1)
Brand Value Market Value of Equity New Term Loan B
(Term
(Term Loan
Loan Priority
Priority
Collateral)
Collateral)

Kate Spade Term Loan benefits from a >$1 billion Trademark Valuation and a
$4.7 billion Equity Market Capitalization

(1) Brand valuation from VRC Report dated 3.21.2014. 7

(2) As of 3.25.2014
Summary of Terms and Conditions
Borrower: Kate Spade & Company (the Borrower)

Guarantors: All wholly-owned domestic restricted subsidiaries

First priority lien on Kate Spade and other trademarks

Security: Second priority lien on other assets of Borrower and Guarantors including
accounts receivable, inventory and material owned real estate

Facility: $400 million Senior Secured Term Loan B

Tenor: 7 years (2021)

Amortization: 1% per annum

50% ECF Sweep (with step-downs based on total leverage)

Mandatory Prepayments: 100% non-ordinary course asset sales of trademarks (with reinvestment rights)
100% non-permitted debt issuance proceeds

Optional Redemption: 101 soft call for 6 months

Financial Covenants: None

Usual and customary including limitations on indebtedness, liens, restricted

Negative Covenants:
payments, acquisitions and asset sales

8
Transaction Timeline
March 2014 April 2014 May 2014
Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat
1 1 2 3 4 5
2 3 4 5 6 7 8 6 7 8 9 10 11 12
9 10 11 12 13 14 15 13 14 15 16 17 18 19
16 17 18 19 20 21 22 20 21 22 23 24 25 26
23 24 25 26 27 28 29 27 28 29 30
30 31

Key Event

Timeline: Event:

March 27th Bank Meeting

April 3rd Lender Commitments due at 5pm

9
II. Introduction

10
 Company Overview
Kate Spade & Company designs and markets accessories and Net Revenue By Channel
apparel under three global, multichannel lifestyle brands:
kate spade new york (ksny) Wholesale
Kate Spade Saturday & Licensing
Jack Spade ~30%
Offers range of products in the accessible luxury space
~50% Brick and
Heritage rooted in handbags and small leather goods Mortar
Growing portfolio of product categories to create full lifestyle
brand ~20%
eCommerce
Other accessories in elastic categories including jewelry,
watches and fragrance
Channel agnostic route to customers Specialty Retail, Outlets and Net Revenue By Geography (3)
highly penetrated eCommerce channel
Strong international business operates directly and with partners in Rest of World
23 countries
Asia 3%
Adelington Design Group private brand jewelry design and
development division and Lizwear which is sold through the club store 17%
channel
FY2013 Kate Spade & Company Comparable Net Sales (1) and
Comparable Adjusted EBITDA (2) of $803 million and $91 million
(1) FY2013 Comparable Net Sales is a non-GAAP performance measure that the Company uses to measure the performance of its
business after giving effect to the dispositions of the Juicy Couture and Lucky Brand businesses and is calculated by subtracting $462
million of FY2013 Juicy Couture net sales from FY2013 consolidated net sales. Does not include the net sales impact of the
acquisition of existing KATE SPADE businesses in Southeast Asia from Globalluxe. 80%
(2) FY2013 Comparable Adjusted EBITDA is a non-GAAP performance measure that the Company uses to measure the performance of
its business after giving effect to the dispositions of the Juicy Couture and Lucky Brand businesses and certain corporate cost U.S. & Canada
savings. A reconciliation of Comparable Adjusted EBITDA to consolidated operating income can be found on Slide 55. Comparable
Adjusted EBITDA includes a benefit of $3 million of incremental Adjusted EBITDA related to the acquisition of existing KATE SPADE
businesses in Southeast Asia from Globalluxe that was completed in February 2014, as if such acquisition had been completed on the
first day of the Companys fiscal year that ended on December 28, 2013.
(3) On a retail sales equivalent basis. 11
 Summary of Recent Strategic Transactions
Juicy Couture Lucky Brand Jeans

Authentic Brands Group (ABG) acquired the IP of
the Juicy Couture brand for $195 million in cash in
November 2013
Retain the existing retail store portfolio, which
will be converted / exited as part of the wind-
down
Commenced wind-down under business-as-
usual conditions
Paying a royalty for the use of the Juicy
Couture brand (minimum of $10 million)
An orderly wind-down is in effect, which is
expected to continue through June 2014
Early termination of 5th Avenue store lease
for $51 million in proceeds, expected to close
in the first half of 2014
Currently evaluating options regarding the
remaining real estate portfolio
Identified ~30 highly appealing locations
earmarked for conversion to Kate Spade-
branded stores
Leonard Green & Partners acquired the Lucky
Brand business in February 2014 for $225 million
$140 million in cash
$85 million in the form of a prepayable 3 year
seller note
$8 million cash interest per annum
Additional PIK interest of $417k per
month accrued and payable at
settlement
Kate Spade & Company entered into a Transition
Services Agreement (TSA) with Leonard Green
Expected to span up to 24 months in totality,
with various aspects rolling off over time
Will be P&L neutral to the Company

Estimated Net Proceeds = $370 380 million(1)

(1) Net proceeds are subject to finalization of restructuring costs and

other transitional-related costs, including the expected receipt of 12
$51 million for the Juicy Couture 5th Avenue Flagship Store.
 Financial Impact of Juicy / Lucky Sale
Composition of Net Proceeds From Sale FY2013 EBITDA Bridge

Comments Kate Spade $130

Proceeds From Sales of Brands Adelington 15
Juicy Couture $195 Juicy Couture 5
Lucky Brands 225 Includes $85mm seller note Lucky Brand (2)
$420 Segment Adjusted EBITDA, As Reported (1)
$148

Est. Restructuring / Transaction Costs Unallocated Corporate Costs (Overhead) (64)

Juicy Couture ($60 - 70) Adjusted EBITDA, As Reported $84

Principally lease and
Lucky Brand (30) employee severance
Exclude: Juicy Couture (5)
($90 - 100) Deduct: Juicy Couture Stranded Costs (2)

Termination of below Estimated Corporate Cost Savings 11

Termination of 5th Ave. Lease $51
market lease arrangement Acquisition of SE Asian Distributor 3
Estimated Net Proceeds $370 - 380 Comparable Adjusted EBITDA (2) $91

Corporate cost savings are expected to be achieved

(1) Segment Adjusted EBITDA is as reported in the Companys 2013 Annual Report on Form 10-
K and is used by the Company as the measure of segment profitability and excludes certain through various actions, including headcount reductions
corporate costs. For more information about Segment Adjusted EBITDA, see Note 18 to the
financial statements for FY2013 included in such Annual Report. in IT, accounting, shared services, facilities and other
(2) FY2013 Comparable Adjusted EBITDA is a non-GAAP performance measure that the
Company uses to measure the performance of its business after giving effect to the
departments and represent almost 25% of the total
dispositions of the Juicy Couture and Lucky Brand businesses and certain corporate cost
savings. A reconciliation of Comparable Adjusted EBITDA to consolidated operating income
planned corporate headcount for 2014.
can be found on Slide 55. Comparable Adjusted EBITDA includes a benefit of $3 million of
incremental Adjusted EBITDA related to the acquisition of existing KATE SPADE businesses
in Southeast Asia from Globalluxe that was completed in February 2014, as if such
acquisition had been completed on the first day of the Companys fiscal year that ended on
December 28, 2013.
13
 From Fifth & Pacific to Kate Spade

$1,784

$1,505
$743
$1,345

$462

$313

$130
$132 $95
$106 $57
$82

FY2011 FY2012 FY2013 FY2011 FY2012 FY2013

Dollars in millions.
Excludes the results in all periods of:
Liz Claiborne brand to J.C. Penny Company, Inc. sold in Nov-11 FY2014E Segment Adjusted EBITDA (1) of $165-$175 million
Mexx business to The Gores Group, LLC sold in Nov-11
Includes the results in all periods of:
Juicy Couture brand to Authentic Brands Group sold in Nov-13
Lucky Brand Jeans to Leonard Green & Partners, L.P. sold in Jan-14
(1) Segment Adjusted EBITDA is as reported in the Companys 2013 Annual Report on Form 10-K and is used by the Company as the
measure of segment profitabilityand excludes certain corporate costs. For more information about Segment Adjusted EBITDA, see Note 18
to the financial statements for FY2013 included in such Annual Report. Kate Spade Segment Adjusted EBITDA of $130 million in 2013 Net Sales Segment Adjusted EBITDA (1)
excludes: (i) $27.2 million of depreciation and amortization expense, asset impairment charges and losses on asset disposals and (ii) $2.0
million of charges due to streamlining initiatives, brand-exiting activities and acquisition related costs.

14
Kate Spades (Brand Level) Significant Momentum
Comparable Store Sales Growth

~200% stacked comp growth

75% 77% 78%

58%

38%
34% 31%
27% 27% 30%
22% 22%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Total Net Sales Growth

Partially attributable to non-comp impact of Kate Spade Japan acquisition (1)

76%
72% 73%
69%
64% 63% 65%
57%
46% 48% 48%

35%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
(1) Kate Spade Japan was a joint venture between Sanei and Kate
Spade formed in August 2009 to operate the kate spade new york,
Kate Spade Saturday and Jack Spade businesses in Japan. On 15
October 31, 2012, the Company acquired the 51% interest in the
JV held by Sanei for $41 million.
 Kate Spades (Brand Level) Significant Momentum (Contd)
Rolling LTM Segment Adjusted EBITDA (1) ($mm)

$130

$110
$102
$95 $97
$91

$73 $76
$66
$57

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 FY2013
Total Company
Sales Productivity (3) ($ / sq. ft.) Comp Adj. EBITDA (2)

$1,226 $1,265
$1,144 $1,167
$1,105
$1,019 $1,052
$955 $989

$570

4Q09 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
(1) Segment Adjusted EBITDA is as reported in the Companys 2013 Annual Report on Form 10-K and is used by the Company as the measure of segment profitability and excludes certain corporate costs. For more information about Segment Adjusted
EBITDA, see Note 18 to the financial statements for FY2013 included in such Annual Report.
(2) FY2013 Comparable Adjusted EBITDA is a non-GAAP performance measure that the Company uses to measure the performance of its business (including corporate costs) after giving effect to the dispositions of the Juicy Couture and Lucky Brand
businesses and certain corporate cost savings. A reconciliation of Comparable Adjusted EBITDA to consolidated operating income can be found on Slide 55. Comparable Adjusted EBITDA includes a benefit of $3 million of incremental Adjusted
EBITDA related to the acquisition of existing KATE SPADE businesses in Southeast Asia from Globalluxe that was completed in February 2014, as if such acquisition had been completed on the first day of the Companys fiscal year that ended on
December 28, 2013.
(3) Defined as net sales divided by the average of beginning and end of period gross square feet and excludes e- commerce net sales.
16
III. Business Overview

17
 Our Key Brands

The aspirational, Novel, easy and fun Modern American

American lifestyle brand
Brand Positioning
She is quick, curious,
playful and strong
Shes gutsy, spirited
and awesome
staples with a bias for
simplicity, warmth and
utility
He is confident in who
he is, and his style is
evident in the way he
wears his scarf

98 Specialty 9 Specialty 11 Specialty

Company-operated 51 Outlets eCommerce 1 Concession

Direct-to-Consumer
Locations (1) 42 Concessions eCommerce

eCommerce

Private brand jewelry design and development division and Lizwear which is sold through the club
store channel
2013 Net Sales of $60 million

18
(1) Store count as at December 28, 2013.
 Product Category Mix
Diverse product portfolio rooted in handbags
Best-known handbag company after Coach, yet with
Ready-to-Wear,
enormous market share opportunity(1)
Jewelry, Footwear and
Accessible price points of $198 - $298 to aspirational Other Accessories
price points of $598 - $1,298 27%

Growing ready-to-wear offering

kate spade new yorks most brand-loyal consumer,
15% more likely to purchase other lifestyle 73%
categories Handbags &
Long-term goal of 30% penetration on a retail sales Small Leather
Goods
equivalent basis
Representative Product Portfolio
Pursuing margin expansion through broader distribution
of elastic categories

Significant growth opportunity in existing and new

licensed product categories

Highly attractive core customer demographic

Age 25 44
$150k+ household income
Professional woman, highly educated, urban /
suburban

(1) Based on ksny quantitative research study conducted by a 3rd party in

November 2013.
19
(2) Company- and partner-operated full price Specialty stores,
concessions and travel retail stores.
 Product Category Mix
Targeting the millennial customer who is looking for
something casual and versatile, at more affordable
price points Ready-to-Wear
Cool and playful brand; a younger sister to the
mainline brand
Not a diffusion of kate spade new york. A brand 41%
that can stand on its own merit

Offering bags, accessories, ready-to-wear and lifestyle 59%

items for the home Handbags,
Price points are ~ 50% of kate spade new york Small Leather Goods
New products in store & online every Saturday and Accessories

New vertical concept with no licensing or wholesale Representative Product Portfolio

Centered around eCommerce channel, where she
spends much of her shopping time
Focus on social media integration, with rewards
for customers social activities on the site

Testing brick and mortar format

3 company-operated stores in U.S. (New York, LA
and Houston)
6 company-operated stores in Japan
1 partner-operated store in Singapore

Staged for growth

20
21
 Product Category Mix
Premium American lifestyle brand with a core
competency in accessories

Jack Spade delivers sophisticated utility, with

personality, for the city-minded man
Ready-to-Wear and
41%
Key Price Ranges Other Accessories

$198 - $598+ bags 59% Bags & Small

$128 - $168 wovens Leather Goods
$88 - $148 knits
$148 - $228 bottoms
$998 suiting Representative Product Portfolio

Core customer demographic

Averages 25 - 45
$100k+ household income
College educated, young professional
Values quality, classic, trend-right design with
an attention to detail and function

22
Adelington Design Group
Private brand jewelry design and development division and Lizwear which is sold through the club store
channel

Providing fashionable, on-trend jewelry that represents a compelling value proposition both for wholesale
customers and end consumers

Serve J.C. Penney via exclusive supplier agreements for the Liz Claiborne and Monet jewelry lines

Trifari classic inspired jewelry addressing the needs of a more traditional customer and kensie
contemporary jewelry sold at department stores

Recently added the license for Trina Turk, sold at Trina Turk retail stores and department stores

High ROI business with small team, little overhead with virtually no capex and minimal investment in
working capital

Although non-strategic, Adelington is operationally synergistic to kate spade new york and Kate Spade
Saturdays jewelry categories
Wholly self sufficient and appropriately scaled operation

Non-distracting to management

23
 Attractive Distribution Channels
Specialty Retail Outlet International eCommerce Wholesale Licensing

88 North American 42 carefully 73 Specialty retail Virtual brand ~390 wholesale 12 existing license
stores selected North locations Flagship stores customers with arrangements
American locations Shipping to 13 ~500 doors
Key driver of 9 ksny Outlet countries worldwide Currently
distribution Attracts a different stores Growth strategy categories include
Innovative, engaging
strategy customer who focused on table-top
and customer-
does not shop in existing door accessories,
Three business centric
the Specialty productivity vs. footwear, eyewear
A place to models used Rich content
channel significant door and tech
experience and drives longer expansion in accessories
interact with our visits with core categories
brand in person Non-cannibalizing frequent and
with controlled roll- repeat traffic Long, strong Largely untapped,
out relationships with margin accretive
Luxury mall-based Strong social
premier U.S. opportunity,
and street media
department store especially in home
locations integration
partners dcor
Industry-leading
execution and Extensive network
customer of overseas
experience distribution
partners
~50% ~20% ~30%

24
Note: Represents company-operated retail stores only.
Specialty Retail
Company-operated Specialty Retail Store Count
161 locations: 88 North America, 30 International (Japan,
Brazil, U.K. and Southeast Asia) and 43 concessions
300+
65 partner-operated Specialty and travel retail stores
Typical North American ksny store averages ~2,000 sq. ft.
161
Flagship stores will deliver a new level of product breadth 121
and customer experience fully profitable; not loss-leaders
38 44 50
Extensive future growth opportunities
Plans for ~40 company-operated new specialty retail
stores and concessions globally in 2014 2009 2010 2011 2012 2013 Potential

Expansion of product category offerings ksny JS KSS

300+ potential Current Footprint

KSNY
JS
Sat
514944_1.WOR NY007LA7

25
Outlet
Company-operated Outlet Store Count
51 locations: 42 North America and 9 International
locations
125+
5 partner-operated Outlets in key international markets
Highly profitable channel
Caters to customers who aspire to Kate Spade, but
may not be able to afford full-price offering 51

She shops exclusively in this channel 29 29 29 31

Represent an incremental and non-cannibalizing

opportunity
2009 2010 2011 2012 2013 Potential
Extensive future growth opportunities
Plans for 30-50 new outlet stores in 2014-16 Current Footprint
125+ potential outlet stores

514944_1.WOR NY007LA7

26
eCommerce
eCommerce Penetration vs. Select Peers
Best-in-class platform with robust penetration
Award-wining eCommerce site ranked #3
in the prestigious Digital IQ Index ~29%

Ship to 13 international markets

Strong omni-channel capabilities ~24%
Urban Outfitters

eBay Enterprise as fulfillment partner

~20%
Continued outsized growth driven by highly
innovative online experience and strong consumer
engagement ~16%
Leveraging the power of social networking
Tight integration to rest of the business ~13%

~10%

~10%

~7%

~2%

27
International Business Models
Go To Market Strategy
Company-
Global Strategy Based on 5 Pillars Country/Region Operated JV Distrib.

1. Brand consistency
Japan

Comes first ensuring long-term growth SE Asia

2. Growth in existing markets Brazil
Increasing market share through additional UK
door rollouts, comp sales and launching new
categories like watches Europe (ex. UK)
3. Product China
Prioritizing initiatives including Asian fashion fit
and celebrating holidays like Chinese New Year Mexico
4. Business development Turkey
Pursuing new regions with no current presence Singapore
5. Business model by region
Malaysia
Use of a variety of business models including
wholly-owned, distribution agreements, joint Thailand
ventures, and wholesaling
Model is chosen to maximize profits and speed
Middle East
of brand appropriate growth Australia

28
International Stores
Hong Kong Ginza, Japan

U.K.

29
Wholesale
Key North American Wholesale Relationships
A leading accessible lifestyle luxury brand in premier
department stores in the U.S. and around the world

Work closely with wholesale customers to ensure

consistent brand presentation

Strategic decision to keep wholesale distribution

narrow within Tier 1 stores

30
Licensing

An untapped margin accretive channel, requiring little

investment

Opportunities for growth in both existing and new

categories

Existing categories include tabletop products, optics

and sunglasses, footwear, stationery and paper
goods, hosiery and tech accessories

Identified opportunities in new categories including

home dcor, beauty, intimate apparel, swimwear,
luggage and active wear

12 existing license arrangements

Plans to launch table linens and swimwear products in

2014, and home dcor items in 2015

Retail equivalent sales of $100 150 million potential

over the next 3 years

31
Design / Merchandising Process
Concept Presentation
Creative Director shares vision of the season
Set mood, color palettes, print / artwork direction

Brand Strategy / Line architecture

Merchandising and Design meet by category to discuss strategy
Determine quantity of development and investments to be made, balancing commercial vs. fashion needs

Sketch Review
Designers present sketches, bringing to life the creative vision while incorporating all business objectives
Merchandising and Design align on the product that will go to proto-type development

Proto review
Creative Director, Design and Merchandising review all proto-types
Tweaks and changes discussed, and final market sample order is determined

First Design Review

Merchandising and Design present creative vision
Channels review all product in the works and provide Merchandising with any special needs or requests

Market
Samples arrive and Design and Merchandising review for final edits

32
Technology Investments

Advanced POS / merchandise management system

Cross-channel inventory visibility

Associates are able to see real-time inventory records at point of
Recent sale
Enhancements Omni-channel capability
Email receipts
Partnership with eBay Enterprise

Mobile POS deployment

Increases transaction processing per hour

Continued Areas Accretive to conversions and dollars per square foot productivity
of Investment /
Enhancement of Customer Relationship Management (CRM) systems
Initiatives
Further improvements to inventory management system and omni-
channel capabilities

33
 Supply Chain & Distribution

Kate Spade & Company does not own or operate any manufacturing facilities

Products are sourced from a global roster of manufacturers

157 manufacturers in 17 countries (1)

Li & Fung acts as the primary global apparel and accessories buying / sourcing agent for all brands in
our portfolio (2)

Most products are purchased as completed product "packages" from our manufacturing contractors

The contractor purchases all necessary raw materials and other product components according to our
specifications

When we do not purchase "packages," we obtain fabrics, trimmings and other raw materials in bulk from
various suppliers, which are delivered to our manufacturing contractors for use in our products

We maintain internal staff responsible for overseeing product safety compliance, irrespective of our agency
agreement with Li & Fung

Distribution in the U.S. primarily occurs out of the Company leased West Chester, OH facility which is
operated by Ridge Global (3PL provider)

(1) On a units manufactured basis. 34

(2) Li & Fung does not buy / source for jewelry product lines.
IV. Credit Highlights

35
Credit Highlights

1 Accessible Luxury Brands with Differentiated Points of View

2 Strong Positioning in Attractive Accessories Category

3 Multiple Layers of Diversity

4 Proven Financial Performance with Significant Momentum

5 Numerous Levers to Drive Sustained Long Term Growth

6 Experienced Management Team Responsible for Building the Business

36
1 Accessible Luxury Brands with Differentiated
Points of View

PRICE
(high)

AESTHETICS AESTHETICS
(modern) (traditional)

(Low)

37
1 Accessible Luxury Brands with Differentiated
Mens Bags
Points of View

500

400
Average Price ($)

300

200

100

Mass Market Luxury

38
1 Accessible Luxury Brands with Differentiated
Points of View

PRICE
(high)

AESTHETICS AESTHETICS
(modern) (traditional)

marimekko

(Low)

39
 2 Strong Positioning in Attractive Accessories Category
Key Attributes of Accessories Category LTM Dec-13 Revenue Composition

$4,981

Higher margin

Less fashion risk

$2,991

Broad appeal (1)

$2,000 ~90%

Less seasonality ~80%

$743
~70%
~80%
Luxury Accessories Market =
$282bn
(2013) (2016)

Luxury Accessories Other Luxury Goods

Note: Kate Spade 2013 represents Kate Spade brand revenues only. 40
(1) On a retail sales equivalent basis.
3 Multiple Layers of Diversity
Net Sales By Channel Net Sales By Product Type (1)

Ready-to-Wear, Jewelry,
Footwear and Other
Accessories
27%

Wholesale
& Licensing

~30% 73%
Handbags &
Small Leather
Goods

~50% Net Sales By Geography (2)

Rest of World

Asia 3%

17%
eCommerce ~20%

Brick and Mortar

80%
U.S. & Canada

(1) Direct-to-consumer only, kate spade new york brand. 41

(2) On a retail sales equivalent basis.
 4 Proven Financial Performance with Significant Momentum
Kate Spade Brand Comparable Store Sales Growth Kate Spade Brand Net Sales Growth

68.9% 69.8%
60.9%
47.6%

29.5% 28.2%

FY2011 FY2012 FY2013 FY2011 FY2012 FY2013

Kate Spade Brand Company-operated Store Count Kate Spade Brand Adjusted EBITDA
$130 (1)
212
(1)
$95 $91 (2)
153

$57 (1)
79

FY2011 FY2012 FY2013 FY2011 FY2012 FY2013 FY2013

Total Company
Comp Adj. EBITDA
Note: Performance reflects Kate Spade brand, as reported.
(1) Segment Adjusted EBITDA is as reported in the Companys 2013 Annual Report on Form 10-K and is used by the Company as the measure of segment profitability and excludes certain corporate costs. For
more information about Segment Adjusted EBITDA, see Note 18 to the financial statements for FY2013 included in such Annual Report.
(2) FY2013 Comparable Adjusted EBITDA is a non-GAAP performance measure that the Company uses to measure the performance of its business (including corporate costs) after giving effect to the dispositions of
the Juicy Couture and Lucky Brand businesses and certain corporate cost savings. A reconciliation of Comparable Adjusted EBITDA to consolidated operating income can be found on Slide 55. Comparable
Adjusted EBITDA includes a benefit of $3 million of incremental Adjusted EBITDA related to the acquisition of existing KATE SPADE businesses in Southeast Asia from Globalluxe that was completed in February
2014, as if such acquisition had been completed on the first day of the Companys fiscal year that ended on December 28, 2013.
42
5 Numerous Levers to Drive Sustained Long Term Growth
Grow specialty retail store base
Domestic
Plans for ~25 new stores in 2014
Specialty Retail
Includes hand selected premier Juicy Couture retail store conversions

Increase penetration, targeting prestige outlet malls

Domestic
Non-cannibalizing channel
Outlets
Plans for ~10 new outlets in 2014

Expand presence in existing and new markets

International Equity participation in a significant number of markets
Plans for ~55 new company- and partner-operated stores in 2014

Global Continue to selectively grow doors and markets

Wholesale Increased product assortment

New styles and price points in core categories

Product Portfolio
Broader distribution of elastic categories
Expansion
Continue to expand into additional product categories

Build functionality and product range of existing platforms

eCommerce
Plans to launch in new geographies; including U.K. in 2014 and other
Growth European / Asian countries in 2015-2016

Untapped margin accretive opportunity

Licensing Category expansion, especially in home dcor
Table linens and swimwear products planned in 2014

43
5 Numerous Levers to Drive Sustained Long Term Growth
Fuel Kate Spade New
York Top Line
Momentum

Strengthen Foundation Evolve Our Industry

of Kate Spade Saturday 2014 Strategy Leading Customer
Brand for Future Growth Experience

Increase Investment Enhance Use of

in Marketing Partnerships for Margin
Expansion

44
6 Experienced Management Team Responsible for Building
the Business
Name / Position / Tenure Joined Prior Retail Experience

Craig Leavitt April 2008 CEO - Kate Spade, LLC

Chief Executive Officer President, Global Retail - Link Theory Holdings
EVP, Sales & Retail - Diesel
Deborah Lloyd November 2007 CCO - Kate Spade at Fifth & Pacific Companies, Inc.
Chief Creative Officer Creative Director - Kate Spade, LLC
Head of Design Team - Banana Republic, Inc.
EVP, Design & Product Development - Gap, Inc., Banana Republic Unit
VP, Women's Design - Burberry London

George M. Carrara April 2012 CFO & COO - Fifth & Pacific Companies, Inc.
President, Chief Operating Officer COO - Tommy Hilfiger
& Chief Financial Officer EVP, US Operations Wholesale & Retail - Tommy Hilfiger
CFO & COO, Wholesale Operations - Tommy Hilfiger
CFO & COO - Mirage Apparel Group
Certified Public Accountant - PwC Entreprenerial Services &
Consumer Products Group
Thomas Linko July 2012 CFO & COO - Juicy Couture
(1)
Chief Financial Officer - Juicy Couture CFO, DG USA at Delta Galil Industries Ltd
SVP, Finance - Tommy Hilfiger North America
VP, Finance - Tommy Hilfiger Europe
Senior Business Analyst - Liz Claiborne Inc.
Linda Yanussi April 2012 VP, Information Technology - Fifth & Pacific Companies, Inc.
Senior Vice President, Glob al Operations SVP, Operations & Logistics, North America - Tommy Hilfiger
& Information Technology VP, Operations - Tommy Hilfiger

(1) Tom Linko is expected to be named as Kate Spade &

Companys Chief Financial Officer in mid-to-late 2014, after the 45
substantial completion of the Juicy Couture wind-down.
V. Historical Financial Performance

46
 Historical Financial Performance
Kate Spade Brand Net Sales Kate Spade Brand Adjusted EBITDA
(1)
$130

($ in Millions) $743
(1) (2)
$95 $91

$462 (1)
$57
$313

FY2011 FY2012 FY2013 FY2011 FY2012 FY2013 FY2013

Total Company
Comp Adj. EBITDA
Management Discussion & Analysis Kate Spade Brand Segment Adjusted EBITDA less CapEx (3)
Net sales increased 60.9% in 2013, primarily driven by a direct ($ in Millions)
to consumer comparable sales increase of 28.2%, an increase $73
of $79 million resulting from the acquisition of our Kate Spade $70
Japan business and the net addition of 37 specialty retail
stores, 11 outlet stores and 11 concessions
Segment Adjusted EBITDA (1) increased $35 million in 2013
reflecting an increase in gross profit resulting from the y-o-y
sales increase, partially offset by an SG&A increase related to $43
direct to consumer expansion and incremental SG&A
associated with the acquisition of Kate Spade Japan and the
FY2011 FY2012 FY2013
launch of Kate Spade Saturday
Note: Performance reflects Kate Spade brand. Segment Adjusted EBITDA is not pro forma for Unallocated Corporate Costs
(1) Segment Adjusted EBITDA is as reported in the Companys 2013 Annual Report on Form 10-K and is used by the Company as the measure of segment profitability and excludes certain corporate costs.
For more information about Segment Adjusted EBITDA, see Note 18 to the financial statements for FY2013 included in such Annual Report.
(2) FY2013 Comparable Adjusted EBITDA is a non-GAAP performance measure that the Company uses to measure the performance of its business (including corporate costs) after giving effect to the
dispositions of the Juicy Couture and Lucky Brand businesses and certain corporate cost savings. A reconciliation of Comparable Adjusted EBITDA to consolidated operating income can be found on
Slide 55. Comparable Adjusted EBITDA includes a benefit of $3 million of incremental Adjusted EBITDA related to the acquisition of existing KATE SPADE businesses in Southeast Asia from Globalluxe
that was completed in February 2014, as if such acquisition had been completed on the first day of the Companys fiscal year that ended on December 28, 2013.
(3) Excludes corporate CapEx of $20 million, $31 million, $22 million in FY2011, FY2012 and FY2013, respectively, which include company-wide expenditures (e.g. POS upgrades) which benefited currently
owned and divested brands.
47
.
 Comparable Adjusted FY2013 Financial Performance
Comparable Net Sales
Adjusted Twelve
Months Ended Kate Spade net sales were $743.2 million in FY2013, a 60.9%
December 28, 2013 increase compared to FY2012
($ in millions) (52 Weeks)(1) The acquisition of KSJ resulted in a $79.3 million increase in
net sales in FY2013 compared to FY2012
Ended 2013 with 118 specialty retail stores, 51 outlet stores and 43
Net Sales $803
concessions
Net addition over the last 12 months of 37 specialty retail stores,
COGS 307 11 outlet stores and 11 concessions

Gross Profit $497 Segment Adjusted EBITDA (2)

Gross Profit Margin % 61.8%

SG&A $448 Kate Spade Segment Adjusted EBITDA in FY2013 was $130.5
% of Sales 55.8% million (17.6% of net sales), compared to $95.0 million (20.6% of
net sales) in FY2012 (includes Unallocated Corporate Costs)
Operating Income $49 KATE SPADE Segment Adjusted EBITDA for 2013 included
Operating Margin % 6.1% $5.7 million of incremental from Kate Spade Japan.
Q4 2013 vs. Q4 2012 increase reflects gross profit increase
Comparable Adjusted EBITDA $91
partially offset by increase in SG&A related to direct-to-consumer
expansion
(1) Financial measures presented on a Comparable basis for FY2013 are non-GAAP measures that Increase also includes SG&A associated with KSJ and launch of
the Company uses to measure the performance of its business (including corporate costs) after
giving effect to the dispositions of the Juicy Couture and Lucky Brand businesses and certain
Kate Spade SATURDAY
corporate cost savings. A reconciliation of Comparable Adjusted EBITDA to consolidated operating Decrease in Segment Adjusted EBITDA margin resulted from the
income can be found on Slide 55. Comparable Adjusted EBITDA includes a benefit of $3 million of
incremental Adjusted EBITDA related to the acquisition of existing KATE SPADE businesses in reporting impact of the Kate Spade Japan acquisition, launch of
Southeast Asia from Globalluxe that was completed in February 2014, as if such acquisition had Kate Spade SATURDAY and expansion of Jack Spade
been completed on the first day of the Companys fiscal year that ended on December 28, 2013.
(2) Segment Adjusted EBITDA is as reported in the Companys 2013 Annual Report on Form 10-K and
is used by the Company as the measure of segment profitability and excludes certain corporate
costs. For more information about Segment Adjusted EBITDA, see Note 18 to the financial
statements for FY2013 included in such Annual Report.
48
 Comparable Adjusted Q4 Financial Performance
Fourth Quarter 2013 Fourth Quarter 2012 Net Sales

Comparable Comparable
($ in millions) Net sales for Kate Spade during Q4 2013 were $256 million, a
Adjusted (1) Adjusted (1)
48.0% increase compared to Q4 2012
Store counts and key operating metrics are as follows:
Total Net Sales $275 $195
Ended Q4 with 118 specialty retail stores, 51 outlet stores and
43 concessions
Kate Spade 256 173
Reflects the net opening of 37 specialty retail stores, 11
outlet stores and 11 concessions over the last 12 months;
ADG 20 23
Average retail square footage in Q4 2013 was ~303 thousand
square feet, a 52.5% increase compared to FY2012;
Gross Profit 170 121
Sales per square foot for comparable stores for the latest
twelve months were $1,265; and
Margin % 61.6% 61.9% Comparable direct-to-consumer sales (inclusive of e-
commerce) increased 30% in the Q4 2013.
SG&A 126 92

Comparable Segment Adjusted EBITDA (2)

$57 $37
Adjusted EBITDA
Kate Spade Segment Adjusted EBITDA during Q4 2013 was $57
million (20.7% of net sales), compared to $37 million (19.0% of
net sales) in Q4 2012 (includes Unallocated Corporate Costs)
(1) Financial measures presented on a Comparable basis for each period presented are non-GAAP
measures that the Company uses to measure the performance of its business (including corporate
costs) after giving effect to the dispositions of the Juicy Couture and Lucky Brand businesses and
certain corporate cost savings. A reconciliation of Comparable Adjusted EBITDA to consolidated
operating income can be found on Slide 56.
(2) Segment Adjusted EBITDA is as reported in the Companys 2013 Annual Report on Form 10-K and
is used by the Company as the measure of segment profitability and excludes certain corporate
costs. For more information about Segment Adjusted EBITDA, see Note 18 to the financial
statements for FY2013 included in such Annual Report.
49
Financial Policies
Maintain significant liquidity to fund operations and achieve strategic objectives
Flexibility with $200 million ABL Facility with de minimis funded balance at
close
Capital Structure
Objectives Strong EBITDA growth profile and resulting free cash flow conversion
provides additional liquidity support
Goal is to reduce funded debt and corresponding interest expense to bolster
free cash flow

Free cash flow generation will be used to support strategic growth plan and
pay down outstanding debt balances
No intent to initiate dividend or share repurchase program
No material acquisitions in the foreseeable future
Financial Guidelines No plans to incur permanent funded debt under ABL Facility

Target to have zero funded debt

Maintain conservative financial policies

Achieve Total Adjusted EBITDA between $115 and $125 million in FY2014

50
Well Capitalized Balance Sheet
$'mm Comment
Proceeds:
New Term Loan B $400
Proceeds from Sale of Juicy 195
Proceeds from Sale of Lucky 225 Includes $85mm seller note

Termination of 5th Avenue Lease 51 Exit in process

$871

Less Uses & Deferrals:

Lucky Brands Seller Note $85 Prepayab le 3-year note from Leonard Green

Juicy / Lucky Restructuring Costs 100 Principally lease & employee severance

Repayment of Existing Debt 402 Includes call premium & fees

SE Asia Investment 39 Acquisition of distrib utor; closed in Feb -14

2014E Capex 100 Principally for ~50 new stores planned in 2014

$726

Net Cash Realized

$145
(Before Investment in Working Capital)

51
Appendix

52
2014 Strategic Plan
Open ~35 stores in North America in 2014
Fuel kate spade new Open ~55 stores internationally in 2014 (includes 25-30 with partners)
york top line Use pricing to encourage entry, and trade up the loyalist
momentum Focus on growth via elastic categories; expand into new categories
Launch e-commerce platforms in U.K. and via partners in Asia

Evolve our industry More targeted communication to consumers using improved CRM capability
leading customer Roll out gold service selling and service program to A-level stores
experience Expand e-commerce site with broad kate spade new york offering: Global Flagship

International partnerships (India, Russia, Asia and South America) and Travel Retail
Enhance use of
Accelerate product licensing initiatives (including sub-brands)
partnerships for margin
Technology collaborations
expansion
Home: bigger, sooner

Move from 2 to 4 campaigns to achieve consistent advertising presence

Increase investment in Leverage new media for increased digital spend and social media
marketing Deploy our enhanced CRM capability
Acquire new full price customers

Strengthen foundation Apply early learnings to product assortment and marketing mix
of Kate Spade Saturday Grow customer base beyond kate spade new york
brand for future Focus on eCommerce
growth Test new store formats

53
Reconciliation of Non-GAAP Financial Information

Quarterly and Full Year EBITDA

Three Months Ended Twelve Months Ended

December 28, 2013 December 29, 2012 December 28, 2013 December 29, 2012
$ in thousands (13 Weeks) (13 Weeks) (52 Weeks) (52 Weeks)

Segment Adjusted EBITDA

KATE SPADE $64,147 $43,416 $130,497 $94,994
Adelington Design Group 5,393 6,977 15,084 21,009
JUICY COUTURE 10,073 11,950 4,722 24,554
LUCKY BRAND 693 (88) (2,047) (1,884)
Total Reportable Segments Adjusted EBITDA 80,306 62,255 148,256 138,673
Unallocated Corporate Costs (15,370) (13,858) (64,136) (69,468)
Other (expense) income(1) (30) (911) (495) 1,058
Less: Foreign currency transaction adjustments, net 302 516 81 375
Adjusted EBITDA, Net of Foreign Currency Transaction Adjustments 65,208 48,002 83,706 70,638
Foreign currency transaction adjustments, net (302) (516) (81) (375)
(2)
Depreciation and amortization, net (15,277) (13,664) (52,408) (49,401)
Charges due to streamlining initiatives and brand-exiting activities, impairment of
intangible assets and loss on asset disposals (59,132) (15,276) (69,958) (66,382)
Share-based compensation(3) (4,119) (476) (8,446) (7,195)
Impairment of cost investment - - (6,109) -
Gain on acquisition of subsidiary - 40,065 - 40,065
Gain on sales of trademarks, net (4) 179,218 - 177,133 -
Loss on extinguishment of debt, net - (1,085) (1,707) (9,754)
Interest expense, net (11,186) (13,825) (47,241) (51,612)
Benefit for income taxes (6,897) (8,553) (3,035) (3,795)
Income (Loss) from Continuing Operations $161,307 $51,778 $73,924 $(70,221)

Adjusted EBITDA, Net of Foreign Currency Transaction Adjustments (As Reported) 83,706
Less: Lucky Reported Segment Adjusted EBITDA 2,047
Plus: FY2013 Lucky EBITDA (Included in Discontinued Operations) 47,000
Other Immaterial Adjustments (1,000)
Company-wide Adjusted EBITDA $131,753
(1) Amounts do not include equity in the losses of equity method investees of $196 and $771 or the three months ended December 28, 2013 and December 29, 2012, respectively and
$1,179 and $1,245 for the years ended December 28, 2013 and December 29, 2012, respectively.
(2) Excludes amortization included in Interest expense, net.
(3) Includes share-based compensation expense of $3.3 million and $3.8 million for the three and twelve months ended December 28, 2013, respectively, that was classified as restructuring.
(4) Reflects the sale of the JUICY COUTURE trademark in the fourth quarter of 2013.
54
Reconciliation of Non-GAAP Financial Information (Contd)
For the Fiscal Year Ended December 28, 2013 Streamlining
Initiatives & Less: Juicy
Brand-Exiting Couture Corporate & Comparable
As Reported (1) Activities (2) Adjusted Results (3) Other (4) Adjusted (5)

Total Net Sales $ 1,265 $ 1,265 $ (462) $ 803

Kate Spade 743 743 743
Juicy Couture 462 462 (462) -
ADG 60 60 60
Gross Profit 726 726 (230) 496

Margin % 57.4% 61.8%

SG&A 771 $ (70) 701 (244) $ (9) 448

Operating (Loss) Income $ (45) $ 70 $ 25 $ 14 $ 9 $ 48

(6)
Depreciation and amortization, asset impairments and losses on asset disposals, net 56 (19) 37
Share-based compensation 5 5
Other expense, net (7) (2) (2)
Adjusted EBITDA $ 84 $ (5) $ 9 $ 88

Operating loss, per above $ (45)

Other income, net (8) 171
Impairment of cost investment (6)
Loss on extinguishment of debt (2)
Interest expense, net (47)
Benefit for income taxes (3)

Income from Continuing Operations $ 74

_______________
(1)
Represents the results of Kate Spade & Company in accordance with accounting principles generally accepted in the US.
(2)
Represents charges due to streamlining initiatives, brand-exiting activities and acquisition related costs.
(3)
Represents the historical sales and gross margin and the Adjusted SG&A and Segment Adjusted EBITDA of the Juicy Couture segment. Adjusted SG&A excludes charges due to streamlining initiatives, brand-exiting activities and
acquisition related costs. Segment Adjusted EBITDA excludes depreciation and amortization, charges due to streamlining initiatives, brand-exiting activities, losses on asset disposals and impairments.
(4)
Corporate and other principally represents adjustments to reflect Corporate Costs on an annualized Adjusted EBITDA basis of $(53) million and certain expenses included in Juicy Couture historical results that were not directly
attributable to Juicy Couture and therefore will not be presented as discontinued operations when the Juicy Couture wind-down is complete.
(5)
Does not include a benefit of $3 million of incremental Adjusted EBITDA related to the acquisition of existing KATE SPADE businesses in Southeast Asia from Globalluxe that was completed in February 2014, as if such acquisition had
been completed on the first day of the Companys fiscal year that ended on December 28, 2013.
(6)
Excludes amortization included in Interest expense, net.
(7)
Includes foreign currency transaction gains and losses and equity in losses of equity investees.
(8)
Includes foreign currency transaction gains and losses, equity in losses of equity investees and gain on sale of trademark .
55
Reconciliation of Non-GAAP Financial Information (Contd)
For the Three Months Ended December 28, 2013
Streamlining
Initiatives & Less: Juicy
Brand-Exiting Couture Corporate & Comparable
As Reported (1) Activities (2) Adjusted Results (3) Other (4) Adjusted

Total Net Sales $ 427 $ 427 $ (152) $ 275

Kate Spade 256 256 256
Juicy Couture 152 152 (152) -
ADG 19 19 19
Gross Profit 243 243 (73) 170

SG&A 256 $ (60) 196 (68) $ (2) 126

Operating (Loss) Income $ (13) $ 60 $ 47 $ (5) $ 2 $ 44

(5)
Depreciation and amortization, asset impairments and losses on asset disposals, net 17 (5) 12
Share-based compensation 2 2
(6)
Other expense, net (1) (1)
Adjusted EBITDA $ 65 $ (10) $ 2 $ 57

Operating loss, per above $ (13)

Other income, net (7) 178
Interest expense, net (11)
Benefit for income taxes (7)

Income from Continuing Operations $ 161

_______________
(1)
Represents the results of Kate Spade & Company in accordance with accounting principles generally accepted in the US.
(2)
Represents charges due to streamlining initiatives, brand-exiting activities and acquisition related costs.
(3)
Represents the historical sales and gross margin and the Adjusted SG&A and Segment Adjusted EBITDA of the Juicy Couture segment. Adjusted SG&A excludes charges due to streamlining initiatives, brand-exiting activities and
acquisition related costs. Segment Adjusted EBITDA excludes depreciation and amortization, charges due to streamlining initiatives, brand-exiting activities, losses on asset disposals and impairments.
(4)
Corporate and other principally represents adjustments to reflect Corporate Costs on an annualized Adjusted EBITDA basis of $(53) million and certain expenses included in Juicy Couture historical results that were not directly
attributable to Juicy Couture and therefore will not be presented as discontinued operations when the Juicy Couture wind-down is complete.
(5)
Excludes amortization included in Interest expense, net.
(6)
Includes foreign currency transaction gains and losses and equity in losses of equity investees.
(7)
Includes foreign currency transaction gains and losses, equity in losses of equity investees and loss on sale of trademark .

56
 Organizational Structure
Kate Spade & Company
(Delaware)

Fifth & Pacific

LCI Fifth & Pacific
FNP Holdings, L.C. Licensing LCI Holdings, Adelington Companies
Investments, Kate Spade LLC Companies F&P Cosmetics LCCI Holdings WCFL Holdings
LLC LLC Inc. Design Group Foreign
Inc. (Delaware) Puerto Rico, (Delaware) LLC (Delaware) LLC (Delaware)
(Delaware) (Delaware) (Delaware) LLC (Delaware) Holdings, Inc.,
(Delaware) Inc. (Delaware)
(Delaware)

Kate Spade Kate Spade South America

Kate Spade Kate Spade Kate Spade
Hong Kong Comercio, Importaco E Exportacao
Japan Co., LTD. U.K. LTD. Canada Inc.
Limited (Hong DE Calcados, Bolsas Roupas E
(Japan) (U.K.) (Canada)
Kong) Accessorios LTDA (Brazil) (1%)

Juicy Couture Juicy Couture Juicy Couture KS China Kate Spade Kate Spade
Canada INC. Europe Limited Inc. Kate Spade Kate Spade Kate Spade
Co. Ltd. Retail Hong Hong Kong
(Canada) (U.K.) (California) U.K. Ltd. U.K. Ltd. Macau
(Hong Kong Ltd. Ltd. LIZ Foreign B.V.
(France (Ireland (Hong
Kong) (Hong (Taiwan (Netherlands)
Branch) Branch) Kong)
(40%) Kong) Branch)

Juicy Juicy
Juicy
Couture Couture
Couture
Europe Europe
Ireland
Limited Limited
Limited
(Spain (Portugal
(Ireland)
Branch) Branch)
US Tax Classification and Operating Status Legend

Corporation

Branch/Rep Office
Mexx Far East LTD.
(Hong Kong)
Shanghai Zhong Controlled Foreign Corporation
Haw Costume &
Accessories Co. Disregarded Entity
Ltd (China) Fifth & Pacific
(33%) Companies Mexx Shenzhen Ltd.
International Limited (China) 10/50 Foreign Corporation
(Hong Kong)

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