Category Archives: Cheap Michael Kors Handbags

Michael Kors replica hadbags first step

While the industry waits to see what replica Michael Kors planned acquisition of Jimmy Choo means for that organization, and the industry at large, the company is undertaking a turnaround of its flagship brands.

The Choo purchase is the first step in Kors’ plan to create a “global fashion luxury group” that leads with fashion authority, craftsmanship and heritage.

Michael Kors outlet uk plan for Choo is to operate it as a separate business, one it expects to reach $1 billion in revenue. To reach that goal, the company will bolster its online presence, expand its retail footprint globally and boost the accessories and men’s categories.


The strategy for the Kors business, dubbed Runway 2020, includes an overhaul of almost every facet of the operations and product as Kors attempts to better control its distribution, reduce markdowns and excite customers. It was a strategy that proved successful for rival Coach. The only questions is, can Kors execute as well?

CEO and Chairman John Idol said the most promising thing to come out of the company’s second quarter was the increase in AUR, or average unit retail. He credits the higher AURs to Kors’ new promotional policy, which limits the timing and frequency with which items are put on sale. AUR also saw improvement thanks to the company’s new layered pricing, which will roll out to more product categories next year. To test it, Kors priced several groups at price points it felt would sell at full price, and the strategy paid off in terms of improved gross margin and sell-throughs.

“We really have shown, if it’s the right product, you don’t need to have aggressive markdowns at retail,” Idol said, during Kors’ earnings call this week.

Kors is also testing some higher priced goods like its Bancroft handbag, which hovers around $1,000. Idol said shoppers haven’t experienced sticker shock—just the opposite. “We’re seeing tremendous sell-throughs on Bancroft… It’s shown us the power of the brand, and the customer’s desire when the product is right,” he said adding, the success has underscored the company’s mission to offer more craftsmanship.

The company plans to add more higher priced items going forward, which it thinks will retail so long as the fashion quotient is correct and evident to the consumer. “We’re working with [the design teams] on innovative materials and workmanship because the customer wants that,” Idol said, adding customizable attributes will also play a big part. “They want something that looks different for them and look diff for their wardrobe.”

Starting next season, Kors is planning to amp up excitement by using a little restraint. “We’re going to put 100s of millions of dollars less product in the market for replica Michael Kors handbags,” Idol said. “That is going to create a bit more scarcity. And we believe a bit more desire.”

Can a Shopping Spree Fix Coach and Kors?

Coach and replica Michael Kors have both shown an appetite for acquisitions, and that’s not necessarily a good thing.

With Coach having recently bought Kate Spade and Michael Kors outlet in the process of acquiring Jimmy Choo, “two consolidating forces have emerged,” William Blair analyst Dylan Carden wrote Monday. The two handbag retailers still seem interested in amassing fashion brands — especially as the handbag market sags. Even after announcing the Jimmy Choo deal, Kors management spoke of “investing in infrastructure” to “pursue and integrate acquisitions.”

Burberry and Tory Burch are among the most replica handbags logical targets. While Burberry has reportedly spurned offers before, Carden thinks Tory Burch could be open to a deal, after nixing the idea of an IPO in the past. Either of these acquisitions would give Coach or Kors more exposure to apparel and footwear.

Nonetheless, he notes that the recent deal-making fever smacks of weakness, which is why the replica handbag brands should make sure that acquisitions will pay off financially and not just create bigger companies. Kate Spade and Coach were each once part of failed brand houses, he notes.

“The current consolidation wave is not being done from a position of industry strength, Carden writes. “More is not necessarily more here, and execution remains key on top of capacity to shore up or maintain strength of core brands.”

US handbag maker Replica Michael Kors buys UK shoemaker Jimmy Choo for US$1.2bn

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US fashion retailer replica Michael Kors Holdings Ltd (NYSE:KORS) has snapped up UK luxury shoemaker Jimmy Choo for US$1.2bn.

Jimmy Choo, made famous by celebrity fans including Princess Diana and singer Beyonce, put itself up for sale in April after majority owner JAB signalled its intention to focus on consumer goods.

Michael Kors outlet, best known for its affordable luxury handbags, has been expanding into dresses and menswear in an effort to address declining same-store sales in recent quarters.

Likewise, Jimmy Choo has seen sales slow in recent years.

Jimmy Choo will become a wholly-owned subsidiary of Michael Kors but will continue to operate as it does today under its existing management team.

“Jimmy Choo is an iconic premier luxury brand that offers distinctive footwear, replica handbags and other accessories,” said Michael Kors, honorary chairman and chief creative officer.

“We admire the glamorous style and trend-setting nature of Jimmy Choo designs.”

Jimmy Choo was co-founded in east London by Malaysian shoemaker Jimmy Choo and former Vogue journalist Tamara Mellon in 1996.

Shares in replica Michael Kors fell 1.37% to US$34.43 in US pre-market trading.

Jonathan Buxton, partner and head of consumer and retail at Cavendish Corporate Finance, said: “This is a significant transaction for replica Michael Kors handbags as it seeks to boost its customer base within the luxury market.

“Jimmy Choo is a widely popular footwear brand but like so many upmarket brands, it has been facing declining sales due to discounting in department stores and customer preferences moving away from conspicuous labels.”

For replica Michael Kors, Buxton said, the deal presents an opportunity to enter the high-end of the luxury market, to increase sales and to diversify away from its own brand, especially at a time when it is experiencing declining same-store sales.

“The acquisition also signals Michael Kors’ push back against competitor Coach, which earlier this year purchased Kate Spade for $2.4 billion, and we expect more consolidation in this market, with more ‘affordable’ luxury houses looking to upscale.”

Why Kate Spade and replica Michael Kors Are Better Off Than Wall Street Thinks

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A new survey about women’s intent to purchase purses in the next few months is a mixed bag for the major brands.

In general, the survey from Baird found that respondents are now less likely to purchase a replica handbag than they were a year ago, with just 13% of folks saying that they plan to buy a bag in the next three to six months. When it came to specific companies, Coach had the strongest “purchase intent.”

In terms of their perception of the major brands, however, respondents had similar positive-enough feelings about Coach, Kate Spade, and Michael Kors outlet uk alike. That might come as a bit of a surprise to investors, since Wall Street has basically been down on every brand but Coach’s. Meanwhile, they’ve been hoping to see Kors and Kate improve.

The fact that they’re already well-perceived by shoppers suggests that the brands’ problems could have more to do with financial strategies than with fashion. Good for the long run, perhaps, but it means that investor relief might not come so quickly. Baird analyst Mark Altschwager remains cautious about Michael Kors ahead of the company’s next earnings report on Aug. 8.

And any weaknesses at Kate Spade are now Coach’s problem, since that acquisition closed last week. Altschwager notes that Kate has registered small declines in purchase intent over the last few surveys, which suggests to him that Coach is right to be taking aim at Kate’s over-reliance on promotions, in an attempt to “focus on longer-term brand health.”

Big Picture: A recent survey suggests that shoppers are less likely to purchase replica handbags than they were a year ago. It also shows that consumers have similar perceptions of Kate Spade, Coach, and replica Michael Kors.

Replica Kors, Kate & Coach: Battle for the Purse Strings

Since Kate Spade was said to be on the market, speculation swirled about which suitor would be the best fit. Two emerged as likely buyers: Cheap  Michael Kors and Coach. And while it was the latter that eventually stepped up with an offer, the two companies have been intertwined in a fight for leader of the affordable luxury handbag space that Coach initially pioneered.

Over the years, each have had their struggles—when Coach faltered during the recession, Kors surpassed it with its new accessories-focused business model, and now with the Coach company overhaul, it is now positioned to reclaim the top spot. In fact, the challenges that Kors faces today mirror those that Coach has recently overcome. And now with the acquisition of Kate Spade, Coach is set to prove that its transformation wasn’t a one-off but rather a successful formula that will catapult it into a multi-brand fashion conglomerate.

The global handbag and small leather goods market is worth about $41 billion, according to industry experts. For retailers and brands, the handbag category is close to ideal. It drives store traffic, yields great margins and is far less complex than apparel since there are no sizes and little seasonality. For consumers, it’s a personal purchase, reflecting tastes, style and lifestyle. It’s the perfect pick-me-up and wardrobe refresher—and it never makes you feel fat.

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These attractive retail economics, combined with the importance of a cheap handbag to consumers, has resulted in an increasingly crowded marketplace. When Coach went public in 2000, the market was dominated by French mega-luxury brands like Chanel, Hermes and Louis Vuitton, Italian brands with global recognition such as Fendi, Gucci and Prada as well as a few more accessibly priced labels, including Kate Spade, Dooney & Burke, Furla and Longchamp. By the time Michael Kors went public in 2012, the market had witnessed an influx of new entrants at contemporary prices such as Rebecca Minkoff, Mansur Gavriel, MZ Wallace, Tory Burch along with a slew of pricey purses from Saint Laurent, Lanvin, Celine, Jimmy Choo, Valentino and many more.

The Coach brand and Michael Kors, which both generate sales greater than $2 billion in replica handbags and small leather goods in North America, are fighting for the lion’s share of the market. Kors is likely in the lead but with 40 percent of its business coming from wholesale operations, it faces poor margins and brand erosion. (The comparison is further blurred because Kors’ apparel business is 30 percent of brand revenues compared to the small single digit clothing accounts for at Coach).

Kate Spade, the company over which they were both vying, is the third billion dollar plus North American handbag outlet brand. The company has had an erratic operating history with less than stellar profit performance, but until recently, it achieved superior sales growth ($1.4 billion in 2016 up from $803 million in 2013 for a 16.9% three-year CAGR). That potential plus the brand’s whimsical and differentiated positioning is what made it appealing. Coach Inc.’s $2.4 billion acquisition of Kate Spade announced in May could catapult the combined businesses to the lead and is a win-win, if its successful in providing the company sound strategic, operating and financial acumen.

Coach re-emerges

Coach is confident it can boost Kate Spade profits by undertaking many of the same steps it took to revive its own brand over the last three years. Following years of double-digit sales and earnings growth, Coach hit a wall in 2014. The highly promotional environment coupled with deep discounts at the outlet tier and a reliance on e-commerce flash sales sent sales down 5.5% and EBIT margin contracted 510 basis points, to 25 percent of sales and the trends were deteriorating. While still the leader in the U.S. handbag outlet market, its position was tenuous.

In June 2014, the company announced it was walking away from an estimated $300 million of flash sales, rightsizing distribution, increasing emotional/lifestyle context with complementary categories and elevating product. The company raised fashion visibility by showing in NY and London fashion weeks and capturing valuable fashion editorial praise for Coach’s executive designer, Stuart Vevers and the Coach 1941 collections.

Kors struggles

While Coach was pulling back to reassess its business, Michael Kors seemed oblivious to the increasingly possible pitfalls in the promotional handbag outlet market. The company expanded aggressively in both the wholesale and retail channels, doubling its owned store base from 405 to 827 since 2014. (Coach operates approximately 1,000 retail locations and has roughly 38 percent more retail square footage). Its jet-set lifestyle positioning benefitted from designer Michael Kors’ stint on Project Runway and the brand’s huge social media following. But you had to question the hubris of the company’s rapid expansion considering Coach’s experience and the significant disruption in retail. No surprise that as Coach repositioning began to achieve traction, and the North American business stabilized and began to grow, the Michael Kors business declined. The tea leaves were there for the reading.

Michael Kors outlet uk held its investor meeting on June 9 during which it laid out its own three-year plan, which looks a lot like the Coach plan: refresh product, rationalize and renovate the store fleet, and reduce promotional activity. Near term, sales and margins will continue to suffer with these brand enhancing moves. Sales declined 4.6% in the most recent fiscal year ended March 2017, and in the most recent quarter, same store sales were off 14.1%. The company is guiding to an approximate $250 million sales decline this year along with an approximate 400 basis point EBIT margin contraction to 16 percent. Up to 125 stores are set to close.

Part aspirational, part functional, the handbag market can grow at a mid-single digit global pace for the next 10 years. Which brand will be the beneficiary of that growth will depend on which offers designs that resonate most. From today’s vantage point, Coach is in the leading position in terms of product newness and covetable products, while the product at replica Michael Kors seems derivative of past successes and higher-end designer copycat renditions.

Marie Driscoll, CFA is an industry analyst focusing on apparel brands, retailers and luxury goods and providing consulting services to academia, industry, investors and non-profits through her firm, Driscoll Advisors.

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.

So to remethat,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.”


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.”



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.