Market Overview

Channel Checks Show Kate Spade Is Leading In Handbag Sales

Channel Checks Show Kate Spade Is Leading In Handbag Sales

Wedbush said channel checks show Kate Spade & Co (NYSE: KATE) remains the top performer in the handbag sales this holiday season despite a lukewarm response for its “Miss Piggy” and “Imagination Monster” collections.

'Relatively Sluggish' Handbag Space

That said, the checks show the handbag category was relatively sluggish month-to-date in December, with all three retailers — Kate, Coach Inc (NYSE: COH) and Michael Kors Holdings Ltd (NYSE: KORS) — raising promotions, in differing ways.

For Kate Spade, analyst Morry Brown said promotions were modestly higher, but traffic appears to hold up relatively well.

Kate Spade launched its December collection, “Disney Miss Piggy” and “Imagination Monster.” The analyst said initial response to the new December collection appears mixed so far versus strong sell through and response to November’s “Make Magic” collection.

“Overall clearance levels seem to have increased slightly and items on markdown include the Cameron Street Neema backpacks, Cameron Street Byrdie bags, and the Skyline Way glitter handbags,” Brown wrote in a note.

Peers In The Space

Among rivals, Coach ran its “Winter Sale” in line with last year, but checks indicate the event was viewed by customers as more exclusive and under the radar last year versus this year.

Brown said peer Michael Kors ran its “Holiday Sale Event,” which was marginally deeper year-over-year. The handbag maker ran a tiered promotion starting at spend $250 receive 25 percent off versus spend $250 get $50 off the purchase.

Shares of Kate Spade closed Monday’s trading at $14.48, Coach ended at $35.28 and Michael Kors closed at $44.85.

Image Credit: By Paul Keleher (originally posted to Flickr as kate spade) [CC BY 2.0], via Wikimedia Commons

Latest Ratings for COH

Nov 2017Initiates Coverage OnPositive
Oct 2017MaintainsOutperform
Oct 2017MaintainsBuy

View More Analyst Ratings for COH
View the Latest Analyst Ratings

Posted-In: handbags handbag retail holiday shopping seasonAnalyst Color News Price Target Reiteration Analyst Ratings Movers Best of Benzinga


Related Articles (COH + KATE)

View Comments and Join the Discussion!

Latest Ratings

MMorgan StanleyMaintains14.0
PSTGMorgan StanleyMaintains20.0
SBACMorgan StanleyMaintains251.0
UNHMorgan StanleyMaintains312.0
WSMMorgan StanleyMaintains60.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

ACADIA Meets Primary Endpoint Alzheimer's Disease Exploratory Study; Stock Rallys

Cocoa Futures Move Down