Michael Kors Banks on Higher Quality replica Handbags to End Sales Funk

Once one of the trendiest stocks around, fashion house Michael Kors (KORS, +1.46%) has been slipping on the runway of late.

Reeling from years of over-expansion in the once-hot replica handbag market and too much focus on promotions, Michael Kors (KORS, +1.46%) reported another quarter of poor numbers on Tuesday, included a 6.4% drop in sales at the company’s retail stores open at least 12 months in its third fiscal quarter, stripping out currency fluctuations. Sales at department stores fell 18%, the result of michael kors outlet uk a previously announced plan to pull back on promotion heavy stores like Macy’s (M, +0.81%).
Kors’ shares fell 11% to hit a new 52-week low.

For years, Kors had been exploding in popularity, boosted by an insatiable appetite for replica handbags that prompted it to open stores quickly. In its bid to grow quickly, Kors focused more on the low end than any upscale aspirant should. And the result has been a hit to its fashion cred and willingness of shoppers to pay full price, a predisposition that won’t come back so easily.

mk bagsSo to remedy that, Kors will ramp up the craftsmanship and offer higher quality leather as it looks to convince shoppers to pay up for its wares. The strategy echoes that of Coach (COH, +0.49%), which after two years of sharp declines has been on the upswing for three straight quarters. Coach said last week that handbags outlet $400 and up accounted for half of sales last quarter, up from 30% a year earlier.

And like Coach—and to some degree fashion chains like Gap Inc (GPS, -0.23%) and Abercrombie & Fitch (ANF, +0.74%)—Kors is looking to repair its image with higher quality products.

“There unique and innovative techniques, including artisanal craftsmanship, iconic hardware details and intricate mixed-media leather will enhancer glamorous handbag offerings,” Michael Kors CEO John Idol said during a call with Wall Street analysts.

Kors has also been buffeted from the trend michael kors replica handbags away from large replica handbags to smaller, cross-body versions, which tend to be less expensive.Sales in the Americas decreased 7.4%, while European sales fell 7%. Sales in Asia surged 89% because of the previously licensed operations in the region that it has acquired. Total company revenue decreased 3.2% to $1.35 billion, while its net income of $271.3 million fell from $294.6 million a year earlier.

Oversaturated? North America Drowning In Michael Kors Outlet, Analyst Downgrades Stock

mkAt least, that’s how Deutsche Bank justified its Monday downgrade of Michael Kors Holdings replica Ltd (NYSE: KORS). Citing market oversaturation, the research firm offered a Hold rating with a lowered price target of $40.

Analysts Paul Trussell and Tiffany Kanaga pointed particularly to the North American wholesale channel, on which Kors depends for 31 percent of revenue, coupled with lacking handbag outlet innovation as catalysts for continued comp weakness. For comparison, Coach Inc (NYSE: COH)’s comparable market exposure is about 4 percent, while Kate Spade & Co (NYSE: KATE) is 20 percent.

“We believe that KORS is suffering from overexposure in its home market,” Trussell and Kanaga wrote in a Deutsche note. “We acknowledge that the brand is working to alleviate this issue by reducing wholesale shipments and promotions. In addition, we believe management has recognized that its accessories offering needs to be more differentiated and is introducing elevated design elements to its handbags.”

However, they noted a need for more drastic shipment reduction — a “reset” to such a degree that it shakes the firm’s upcoming Investor Day.

Also Look Out For…

As yet, sales are waning in the company’s primary product channels, as confirmed by the earnings reports of relevant retailers. Macy’s Inc (NYSE: M), which supports 12.7 percent of Michael Kors revenue, recently testified to quarterly handbag replica underperformance, while Fossil Group Inc (NASDAQ: FOSL) noted a similar drop in Michael Kors watch sales.

Although Trussell and Kanaga foresee growth in other categories, such as apparel and footwear, they expect the initiatives to be slow in demonstrating intended effects.

“Waiting for these initiatives to play bags outlet out will require patience, and we expect pressure in North America to weigh on near-term results,” they wrote.

The firm also recognizes great opportunity for Michael Kors in the undersaturated Asian market, which could support a 59-percent increase in eastern stores. “Yet, at 8 percent of sales, Asia is still too small to counteract weakness in North America,” Deutsche reported.

Financial Expectations

Considering the various market factors, the research firm lowered its fourth-quarter EPS estimate from $0.94 to $0.69 and its 2018 EPS estimate from $4.45 to $3.85.

Company comps are expected to fall to the low-teens in the fourth-quarter, and although Deutsche predicts improvement in the next fiscal year, it does not anticipate inflection. Risks to the thesis include slowdown in accessory purchases and early reacceleration of comps.

Michael Kors outlet was trading down 0.8 percent around $36.45 at the time of publication, just weeks ahead of the company’s fourth-quarter earnings report and June 9 Investor Day.

RETAILLuxury Market Gets Tougher For Replica Michael Kors After Coach Buys Kate Spade

Michael-KorsAlready facing struggling sales after rapid expansion, Michael Kors replica handbags Holdings Ltd. must now deal with the merger of two of its biggest rivals.

According to Bloomberg Pursuits, Coach Inc.’s $2.4 billion acquisition of Kate Spade & Co. creates a powerhouse that will put pressure on Michael Kors. Both luxury brands are competing in a declining market for handbag outlet sales, and Kate Spade’s vibrant styles give Coach an edge in the race for younger consumers. There are also plans to expand Kate Spade in Asia, which may curb Michael Kors’s aggressive growth in the region.

“When you have three key players and that was reduced to two, the third one will naturally be at a disadvantage,” said Adrienne Yih, an analyst at Wolfe Research LLC.

The merger comes at a tough time for Michael Kors replica handbags, which is trying to shed its image as a lower-priced brand. The company, which expanded to 816 stores currently from 177 stores in 2011, has also suffered from rapid growth and overexposure. Sales at Michael Kors outlet stores open at least a year have dropped in seven of the past eight quarters. The stock has tumbled 24 percent in the past year through Tuesday.

The company also became too dependent on sales from department stores, outlets and off-price channels, receiving about 46 percent of its sales from department stores and other retailers, compared with about half that percentage at Kate Spade and only four percent for Coach.

To help boost sales, Michael Kors outlet uk announced last year that it was cutting back inventory at department stores, and has diversified beyond handbags and expanded its menswear business and smartwatch offerings.

“Michael Kors is trying to get away from the damage that was caused by being too ubiquitous and overexpanding,” said Neil Saunders, an analyst of retail analytics firm GlobalData Retail. “That takes some time to execute.”

And there is some good news for replica Michael Kors about the merger: It means the end of Kate Spade’s reliance on online flash sale sites, and some retail partners will also reduce the rampant discounting in the handbag industry. That will help Michael Kors’s own efforts to cut markdowns.

“They now have to make a strong comeback to differentiate themselves in very competitive commoditized market,” said Milton Pedraza, a New York-based luxury consultant. “Michael Kors replica handbags has to get its own act together like Coach did.”

RELATED ITEMS:ASIA, HANDBAGS, KATE SPADE, LUXURY MARKET, MICHAEL KORS COACH, RETAIL, WHAT’S HOT

Michael Kors Replica handbags Faces Tougher Market After Coach-Kate Spade Merger

For Michael Kors handbags replica Holdings Ltd., the luxury fashion brand struggling with declining sales after rapid expansion, the combination of its two biggest rivals is unwelcome news.

Coach Inc.’s $2.4 billion acquisition of Kate Spade & Co. creates a New York-based powerhouse that will put pressure on London-based Michael Kors as both companies compete in a declining market for handbag replica sales. Kate Spade’s colorful and whimsical styles, popular with millennials, give Coach an edge in the race for younger consumers.

And the merged company’s plans to expand Kate Spade in Asia may blunt Michael Kors’s aggressive growth in the region, said Adrienne Yih, an analyst at Wolfe Research LLC.

“When you have three key players and that was reduced to two, the third one will naturally be at a disadvantage,” Yih said.

mikealThe merger comes at an especially difficult time for Michael Kors, which is staging its own turnaround plan. The retailer is trying to shed its image as a lower-priced brand that can easily be bought at off-price stores like T.J. Maxx and on the discounting racks of department stores. The company also is introducing new designs to entice customers to pay full price.

It won’t be easy to regain the glamour. Coach has the capability to improve the quality of Kate Spade’s handbags outlet while keeping prices the same, challenging Michael Kors’s market position, said Yih.

“They will make Kate Spade product a better value for the consumer, who then will pay full price because they feel like they can get more,” she said.

A Michael Kors representative declined to comment.

Like its two main competitors, Michael Kors has been battered by heavy promotions at department stores, which face stiff online competition, slower mall traffic and a strong dollar that hurts tourist sales. But Michael Kors is also the victim of its own success. It expanded to 816 stores currently from 177 stores in 2011 as it capitalized on the popularity of its namesake designer, who has dressed celebrities from Jennifer Lawrence to Michelle Obama. By 2014, the company had overtaken Coach as the largest handbag maker in the U.S., according to the research firm Euromonitor.

With that rapid expansion, however, came overexposure. Sales at Michael Kors stores opened at least a year have dropped in seven of the past eight quarters. The stock has tumbled 24 percent in the past year through Tuesday.

MKThe company also became too dependent on sales from department stores, outlets and off-price channels. Michael Kors gets about 46 percent of its sales from department stores and other retailers, compared with about cheap handbags half that percentage at Kate Spade, Yih estimated. Contribution from department stores accounts for only 4 percent of Coach’s total sales. Read more: Coach investors see $2.4 billion Kate Spade deal as bargainAs Michael Kors merchandise became more accessible to a wider customer base and department stores began to mark down the merchandise, the brand’s cachet began to erode. Moreover, its product design became less innovative.

To regain its footing, Michael Kors announced last year that it was cutting back inventory at department stores to rein in promotions — a strategy used by Coach and Kate Spade for several years. The company also has diversified beyond handbags replica and expanded its menswear business and smartwatch offerings.

“Michael Kors is trying to get away from the damage that was caused by being too ubiquitous and overexpanding,” said Neil Saunders, an analyst of retail analytics firm GlobalData Retail. “That takes some time to execute.”

Chief Executive Officer John Idol said in June 2016 that he was looking at mergers and acquisitions for expansion, prompting speculation that he was interested in Kate Spade. The Coach deal announced Monday ended the M&A talk.

The merger isn’t all bad news for Michael Kors. Coach’s plan to end Kate Spade’s reliance on the overly promotional channels handbags replica of online flash sale sites and some retail partners will also reduce the rampant discounting in the handbag industry. That will aid Michael Kors’s own efforts to cut markdowns. It’s now up to Michael Kors to accelerate its transformation plan.

“They now have to make a strong comeback to differentiate themselves in very competitive commoditized market,” said Milton Pedraza, a New York-based luxury consultant. “Michael Kors has to get its own act together like Coach did.”

STOCKS: MICHAEL KORS’ RESULTS SEND MESSAGE TO SKEPTICS

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Michael Kors Holdings, the handbag replica and accessories maker posted a comparable sales drop that was much smaller than had been expected, allaying the concerns of some investors that the business growth has come to a stop.

Kors shares surged by up to 19% their biggest percentage gain for a single day in the past two years, after the third quarter results were posted by the company and easily beat Wall Street expectations.

Kors was once the hottest affordable luxury name in the market and had posted sales growth in the double digits until 2014, helped in part by its great success in sales of $300 bags and hype of former TV show judge of Project Runway and founder Michael Kors.

However, in a bid to sustain its sales growth, the company expanded rapidly across North America in a move that made its handbags outlet become commonplace for women who are fashion conscious.
John Idol the CEO of Kors said the industry became too focused on the michael kors replica handbags price point of $300.

Kors is innovating aggressively now cheap michael kors as well as expanding its presence online, which helped to drive sales during the holiday quarter.Its sales, at its established stores were down by 0.9% during the quarter that ended on December 26, compared to a drop of 4.5% that had been forecasted.

Sales increased by 2% on a constant currency basis marking the first increase in the past four quarters.While fashion trends shift towards the cross body lower priced bags as well as satchels reduced the average revenue michael kors outlet uk per unit during the third quarter, it also helped the company see a growth in double digit percentage in units sold.

In North America, the company’s largest market, comparable sales rose in the low single digits.In Europe, the second largest market, revenue increased by 14.2% during the quarter, amidst austerity measures, which have otherwise tightened spending across the region.

Overall revenue increased 6.3% to end the quarter at $1.4 billion with attributable net income dropping to $294.5 million compared to $303.6 million in the same quarter one year ago.

Why Kate Spade Replica & Company Plunged 25.1% in April

What happened
Shares of Kate Spade & Company (NYSE:KATE) fell 25.1% in the month of April, according to data provided by S&P Global Market Intelligence, after reports that the luxury lifestyle-products bags replica specialist wanted more time to consider a buyout offer, then announced disappointing first-quarter 2017 results.

So what
Kate Spade popped nearly 29% in February after the company revealed it was evaluating strategic alternatives. But after industry peer Coach Inc. reportedly presented an offer michael kors handbags replica  in late March, Kate Spade shares fell as much as 16% in a single day in early April after sources speaking to Reuters said it needed a few more weeks to negotiate a potential deal.

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However, shares declined another 6.3% on April 18, 2017, when Kate Spade announced first-quarter 2017 results that missed expectations, stoking worries that its approach may have michael kors handbags outlet backfired. Quarterly revenue declined 1.1% year over year, to $271.2 million — below estimates for $299 million — including a 2.4% decline in same-store sales.

Net income also fell to $1.36 million, or $0.01 per share — below estimates for $0.07 per share — though that included $7 million in one-time pre-tax store impairment charges, and $2 million in fees and expenses related to its ongoing review.

Now what
Kate Spade investors shouldn’t rule out a potential michael kors handbags replica acquisition. The company didn’t hold an earnings conference call and declined to provide forward guidance last month, noting management was continuing “to evaluate strategic alternatives to further maximize value for our shareholders.” And to make matters even more interesting, Michael Kors has been reported as another interested suitor.

Given the combination of uncertainty surrounding bags outlet the process, Kate Spade’s underwhelming first-quarter results, and the company’s meteoric rise leading up to the start of last month, it’s hard to blame investors for taking some of their profits off the table in April.

Michael Kors on Higher Quality Replica Handbags to End Sales Funk

Once one of the trendiest stocks around, fashion house Michael Kors (KORS, -2.18%) has been slipping on the runway of late.
Reeling from years of over-expansion in the once-hot handbag market and too much focus on promotions, Michael Kors (KORS, -2.18%) reported another quarter of poor numbers on Tuesday, included a 6.4% drop in sales at the company’s retail stores open at least 12 months in its third fiscal quarter, stripping out currency fluctuations. Sales at department stores fell 18%, the result of a previously announced plan to pull back on promotion heavy stores like Macy’s (M, -1.77%).Kors’ shares fell 11% to hit a new 52-week low.

For years, Kors had been exploding in popularity, boosted by an insatiable appetite for michael kors replica handbags that prompted it to open stores quickly. In its bid to grow quickly, Kors focused more on the low end than any upscale aspirant should. And the result has been a hit to its fashion cred and willingness of shoppers to pay full price, a predisposition that won’t come back so easily.

mk2

So to remedy that, Kors will ramp up cheap michael kors the craftsmanship and offer higher quality leather as it looks to convince shoppers to pay up for its wares. The strategy echoes that of Coach (COH, -1.68%), which after two years of sharp declines has been on the upswing for three straight quarters. Coach said last week that handbags $400 and up accounted for half of sales last quarter, up from 30% a year earlier.

And like Coach—and to some degree fashion chains like Gap Inc (GPS, +0.75%) and Abercrombie & Fitch (ANF, -0.17%)—Kors is looking to repair its image with higher quality products.

“There unique and innovative michael kors bags replica techniques, including artisanal craftsmanship, iconic hardware details and intricate mixed-media leather will enhancer glamorous handbag offerings,” Michael Kors CEO John Idol said during a call with Wall Street analysts.

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Kors has also been buffeted bags outlet from the trend away from large cheap michael kors handbags outlet to smaller, cross-body versions, which tend to be less expensive.Sales in the Americas decreased 7.4%, while European sales fell 7%. Sales in Asia surged 89% because of the previously licensed operations handbags replica in the region that it has acquired. Total company revenue decreased 3.2% to $1.35 billion, while its net income of $271.3 million fell from $294.6 million a year earlier.

Make for Exciting 2017 Designer Handbag Replica Bingo/Tricky Tray!

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The Jefferson Arts Committee will host its sixth annual bingo fundraiser and tricky tray featuring numerous well known designer handbags replica including Coach, Tommy Hilfiger, Kate Spade, Vera Bradley, Calvin Klein, Brighton, Dooney & Bourke, Michael Kors and more! This 2017 event is on Friday, June 9 at the Jefferson Township High School cafeterias, 1010 Weldon Road, Oak Ridge, NJ with doors opening at 5:30 pm and calling to begin at 7 pm.

Admission is $25 pp and includes three bingo boards for michael kors replica handbags each of the 20 games to be played – that’s 60 chances to win a beautiful handbag and extra bingo boards can be pre-ordered for $5 each (extra boards will be available at the event for $10 each).  Daubers must be used for the bingo games – bring your own or purchase one that evening for a nominal charge.

Reserved seating is required as seating is limited, and reservation forms are available at http://jeffersonarts.org/forms.html, www.facebook.com/JACBingo (LIKE our page while you’re visiting and check now and then for updates and information), or via an email to coachverab@yahoo.com   Don’t delay because this event is always sold out!

mmksFor those who wish to participate for more exciting fun after the bingo games, there will also be a special Tricky Tray featuring more designer handbags and accessory cheap michael kors items, gift cards and certificates, jewelry, etc. as well as a 50/50 raffle.  You can choose to also take a spin at the “Wheel of Chance” for an opportunity to win other beautiful designer handbags and purchase tickets for the amazing handbags outlet Specials being offered this year – including a 40” LED Smart TV, Vera Bradley sets each worth over $400, a Coach watch, and a Coach jewelry set!  Super specials include Disney Hopper passes, Vera Bradley luggage and more!  Tickets will be sold at the event for these activities.

For the convenience of the guests, three meal choices will be available from Frank’s Pizza Restaurant of Oak Ridge, and you can pre-order and pay for your choice of an Italian Wrap,  a Grilled Chicken Caesar, or a bowl of Penne Vodka pasta right on your event registration form.  Snacks and refreshments michael kors replica handbags will be available for purchase with complimentary coffee, tea, and dessert.  No coolers or alcoholic beverages allowed, and no one under 18 admitted.

Questions can be directed to Renee at coachverab@yahoo.com or 973-697-4840.  However, all reservations and payment must be mailed to the Arts Committee’s post office box according to the instructions on the form – absolutely no reservations will be accepted in person or by phone bags replica.

Tickets still on sale for ‘Bags,Replica’

Tickets remain on sale for the annual “Bags, Replica” fundraiser for Children’s Alliance Center of Palo Pinto County.

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This year’s event is April 6 at Genesys Aerosystems’ airplane hangar at One S-Tec way near Mineral Wells Municipal Airport. The doors open at 5:30 p.m., with the event from 6 p.m. to 9 p.m. Returning this year as guest emcee is WBAP-TV (Channel 8) news personality Marlee McCormick.

This fundraiser kicks off “Child Abuse Awareness Month” in April.

Tickets are currently on sale at CACPPC’s offices located at 204 S.E. 3rd Ave. Advance tickets are $40 per person, or $50 at the door. Tables that have been sponsored will be guaranteed reserved seating. All other (general admission) seating will be open and based on a first-come, first-serve basis.

One ticket to “Bags, Replica” includes 20 Bingo game cards for the ticket holder to play for the chance to win designer michael kors replica handbags  which retail from at a minimum $200. Additional game cards will be sold at the event for those who want to increase their odds of winning a specific bag. There will be light snacks, water, Coke and Sprite served. A cash bar will also be available.

“We have enlarged our seating capacity, so come on and join the fun, while supporting a great cause,” said CACPPC Executive Director Linda Porter-Bradford.

Proceeds from ticket sales and sponsorships for this flagship event will help the CACPPC fulfill its mission: “Uniting collective efforts to prevent child abuse, reduce trauma of abuse, and protect children, while restoring the families of our community.”

Attendees will play games of Bingo for chances to win replica handbags from designers such as Dooney & Bourke, Brighton, Louis Vuitton, Kate Spade, Ralph Lauren, Tory Burch, Kenneth Cole, Vera Bradley and Michael Kors. The bags outlet are modeled along a runway by local and area law enforcement officers, fire fighters and first responders.

Title sponsor for this always popular event is Ken Williamson and First Financial Bank of Mineral Wells.

Kate Spade seeks more time for talks Michael Kors handbags Outlet

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Michael Kors replica Handbag and accessories maker Kate Spade will spend a few more weeks negotiating a potential sale of the company after receiving an offer last week from Coach, three people said on Monday on condition of anonymity.

Michael Kors also remains interested in Kate Spade, though it has not been pursuing an acquisition of the company as actively as rival fashion accessories maker Coach, the people said.Giving the sale process more time allows potential buyers to better assess Kate Spade’s first-quarter sales and negotiate a potential deal, the people added.

Kate Spade shares ended trading on Monday down 1.85 percent at $22.80, giving it a market capitalization of around $2.9 billion. If Kate Spade manages to negotiate a sale of the company, a deal would very likely value it below that level, according to the people. It is also possible that negotiations end without a deal, the people cautioned.
Michael Kors and Coach declined to comment, as did Kate Spade.

Affordable luxury brands such as Michael Kors and Coach have suffered after they expanded their retail presence too quickly and sold too heavily in outlet stores, diluting the exclusivity that once caused shoppers to line up for the next hot handbag replica.

These brands have been hurt as fewer shoppers in malls have led to fewer handbag outlet sales, while a stronger dollar has made it difficult for them to maintain their popularity with tourists visiting the United States.

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Kate Spade would offer Coach or Michael Kors greater pricing power with department stores, as well a younger clientele.Coach has been seeking to diversify its business beyond Michael Kors replica handbags. It paid $574 million for designer footwear company Stuart Weitzman in 2015.

Michael Kors, which sells apparel,Michael Kors handbags for sale, watches and other accessories, said in its most recent earnings call it was “actively looking” at potential acquisitions and that it probably would not do small deals. The company has been focused on a turnaround by improving its outlets and stores.

Kate Spade has been under pressure from a small New York-based hedge fund, Caerus Investors, whose stake in the company could not be determined. Caerus sent a letter to Kate Spade’s board in November, stating it was “increasingly frustrated” by the inability of the retailer’s management to achieve profit Michael Kors bags outlet margins comparable with industry peers.

Separately, investor Barry Rosenstein’s activist hedge fund Jana Partners has also revealed a small stake in the company.