Kate Spade confirmed Thursday that it is considering “strategic alternatives” for the company’s future, which may include a sale.
The handbag, clothing, shoes and accessories seller’s move comes amid challenges for U.S. luxury retailers as the strong dollar dampens foreign tourist spending.
On Thursday, shares of Kate Spade rose $2.89 to $22.56. The stock had already jumped in December after reports the company had put itself up for sale.
The company reported Thursday that its fourth-quarter net income rose 39 percent to $86 million. Sales rose 9.8 percent to $429 million, helped by the opening of 52 new stores in 2016.
The company said it had hired advisers to conduct “a process to explore and evaluate strategic alternatives” and that it would not provide any updates during the process.
The move comes after an activist hedge fund, Caerus Investors, urged a potential sale in November, saying it was “deeply concerned about the precipitous decline in the share price of Kate Spade over the last two and a half years brought about by management’s inability to meet their own stated goals.”
