Net Worth Ranker
What Is Kate Spade’s Net Worth?
At the time of her passing in June 2018, Kate Spade, the celebrated American fashion designer and founder of the luxury brand Kate Spade New York, had a net worth of $100 million. This valuation reflected her successful career in fashion and her business acumen in building a global brand.
Early Career and the Rise of Kate Spade New York
Katherine Noel Brosnahan, who later became known as Kate Spade, was born on December 24, 1962, in Kansas City, Missouri. Her early life provided little indication of the fashion empire she would create. She attended St. Teresa’s Academy, an all-girls Catholic high school, and subsequently enrolled at the University of Kansas before transferring to Arizona State University. There, she joined the Kappa Kappa Gamma sorority and earned a journalism degree in 1985. During her college years, she gained retail experience working at Carter’s Men Shop in Phoenix, which may have subtly influenced her future entrepreneurial path.
After graduation, Kate moved to New York City and began her career at “Mademoiselle” magazine. She dedicated five years to the publication, climbing the ranks to become a senior fashion editor and head of accessories. This experience provided her with invaluable insights into the fashion industry and market trends, which she would later leverage in her own business.
In 1991, Kate left “Mademoiselle” to pursue her entrepreneurial ambitions. Two years later, in 1993, she co-founded Kate Spade New York with her then-boyfriend, Andy Spade, brother of actor David Spade. Initially unsure of what to name the company, Andy suggested “Kate Spade,” anticipating that she would take his last name after their marriage. To create her first line of handbags, Kate used paper and Scotch Tape to make six prototypes. She found a manufacturer in East New York willing to work with a startup, and Andy financed the company by withdrawing funds from his 401(k).
The brand’s breakthrough came after the Barneys department store chain placed an order for Kate’s bags at a show at the Javits Center. Kate made a crucial design change, placing the labels on the outside of the bags, which significantly boosted their visibility and appeal. Her handbags, priced between $150 and $450, quickly gained popularity. In 1996, she opened her first store in New York City’s SoHo neighborhood. From its initial focus on handbags, Kate Spade New York expanded to include clothing, shoes, jewelry, eyewear, fragrances, stationery, and other items.
In 1993, the company reported $100,000 in sales, which grew exponentially to $27 million by 1998 and $99 million by 2006. The brand expanded rapidly, with over 140 Kate Spade shops and outlets in the U.S. and more than 175 stores internationally.
Business Transactions and Brand Evolution
Kate and Andy Spade sold 56% of Kate Spade New York to the Neiman Marcus Group in 1999 for $34 million. Despite the sale, they remained active in the brand’s operations. In 2006, they sold their remaining stake for $60 million. While they did not directly benefit from the 2017 acquisition of the Kate Spade New York brand by Coach for $2.4 billion, their initial sales provided them with substantial financial gains.
In 2004, Kate Spade launched a home collection, Kate Spade at home, which included bedding, decor, bath items, and wallpaper. After Neiman Marcus Group bought the remaining shares of Kate’s company in 2006, they sold Kate Spade New York to Liz Claiborne Inc. for $124 million. In May 2017, Coach, Inc. acquired the brand for $2.4 billion, further cementing the brand’s status in the luxury market.
In 2016, Kate Spade launched Frances Valentine, a line of luxury handbags and footwear. After her death, the Frances Valentine label released the Love Katy collection in her memory, with Kate’s niece, Rachel Brosnahan, starring in the spring 2019 ad campaign.
Literary Ventures and Television Investments
Kate Spade also ventured into publishing. In 2004, she released the books “Manners,” “Occasions,” and “Style,” offering her insights into etiquette and fashion. In 2006, Kate and Andy invested in a small television network called Plum TV, which broadcast in affluent areas such as Martha’s Vineyard, Nantucket, and the Hamptons. The specific financial details of these investments and the returns they generated are not publicly available, but they reflect Kate’s diverse interests and business ventures.
Personal Life and Family
Kate met Andy Spade in 1983 while working at Carter’s Men Shop. They married in 1994. In February 2005, they welcomed their daughter, Frances Beatrix Spade. Kate guest-starred as herself on David Spade’s NBC sitcom “Just Shoot Me!” in 2002, highlighting the couple’s integration into both the fashion and entertainment worlds.
Following Kate’s death, Andy Spade revealed that they had been living separately for ten months but remained close, prioritizing their daughter. He stated that they were not legally separated and had never discussed divorce, emphasizing their continued friendship and shared commitment to their family.
Death and Legacy
On June 5, 2018, Kate Spade was found dead in her New York City apartment. Her death was reported as a suicide by hanging, and she left a note for her daughter. Andy Spade stated that Kate had suffered from depression and anxiety for many years and was actively seeking treatment. Her death was a shock to her family and the fashion world.
Kate Spade’s funeral took place at Our Lady of Perpetual Help Redemptorist Church in Kansas City, Missouri, on June 21st, a day after her father’s death. Two weeks after Kate’s passing, Kate Spade New York pledged to donate $1 million to suicide prevention organizations. The company also established a Mind, Body, Soul program for its employees worldwide, demonstrating a commitment to mental health awareness and support.
Awards and Honors
Kate Spade received numerous accolades throughout her career. In 1996, the Council of Fashion Designers of America (CFDA) named her “America’s New Fashion Talent in Accessories.” In 1998, CFDA recognized her as “Best Accessory Designer of the Year.” In 2004, her home collection earned her the “Elle Decor” International Design Award for Bedding, the “Bon Appétit” American Food and Entertaining Award for Designer of the Year, and the “House Beautiful” Giants of Design Award for Tastemaker. She was inducted into the Henry W. Bloch School of Management’s Entrepreneur Hall of Fame in 2017, and “Fast Company” included her on its “Most Creative People in Business” list that same year.
Real Estate
In June 2019, Kate Spade’s 3,025-square-foot Park Avenue apartment was listed for sale at $6.35 million. Kate and Andy had purchased the two-bedroom, 2.5-bathroom home 20 years earlier for $2.675 million. This real estate transaction reflects the appreciation of property values and the Spades’ investment acumen.
