Focus on Kate Spade: 2008 Brings Big Changes to the Brand

Timeless silhouettes, perky colors and snazzy details. These are the things that set apart Kate Spade from the competition.

According to her Web site, Kate Spade's design philosophy is to, "Create products that combined great personal style with long lasting utility." What's unique about her style? Everything is decidedly feminine and meant to be worn for more than one season.

Kate, born Katherine Noel Brosnahan, grew up in Kansas City, Missouri. In 1986 after her college graduation from Arizona State University, Kate moved to New York City to work for Mademoiselle Magazine. Though extremely successful, Kate left the magazine to develop a new concept where she saw a huge opportunity-creating a stylish, yet practical handbag line with classic appeal.

The first collection included six simple shapes. These shapes (including the easily identifiable nylon "Sam" structured tote circa 1993) are still used today. Leather, canvas, basket weaves and glorious fabrics have since been added to the collection.

Most consider a Kate Spade bag a smart investment because while undeniably stylish, her work tends to avoid "of the moment" trends. Take the current Narragansett Stevie bag in leather ($425); though it adheres to the oversized shape seen on the runway, somehow Kate Spade manages to make it look ladylike with her small touches such as polka dot lining and lacing details.

In addition to being a business success story, Kate's tale is also a love story. Along the way to handbag fame, Kate met and married Andy Spade. And the company name is symbolic of their union.

Splitting duties comes naturally to the husband and wife team. When they launched the company in 1993, Andy was there to help every step of the way. He used his marketing background to solidify a brand image while Kate set about putting her impeccable taste to work. And that system has pretty much remained the key to their success. For more than a decade, Kate has continued to steer the brand's image as head designer and Andy has grown the business as CEO.

All the hard work paid off for the dynamic duo. After just five years in business, the Council of Fashion Designers (the fashion world's leading group), honored Kate as Accessory Designer of the Year (1998). The following year they received a huge cash infusion from Neiman Marcus allowing them to grow and explore new markets. Kate Spade has expanded their offerings to include: stationary, shoes, apparel, baby items, sunglasses and more. In addition to the new lines, they've opened dozens of free standing Kate Spade shops.

2008 brings big changes to the company as Kate and Andy are leaving the day-to-day operations. Liz Claiborne bought the brand in 2006 (for a reported $124 million) and is set to take operations. The Spades stayed on to smooth the transition, and for now they will serve on the board.

What does this mean for loyal customers? It will most likely take a season or two to see the true course of the new company. Insiders won't count this pair out for long. Kate and Andy intend to focus on family for a stretch with their newfound freedom (the pair had a baby, Frances, in 2005)-but don't be surprised if the Spades dream up a new concept that makes shoppers swoon.