Category Archives: Cheap Michael Kors Handbags

Expensive replica Handbags Are Going Out of Style

Like every gold rush, the replica handbag boom was bound to bust. After years of clocking double-digit growth earlier in the decade, handbag sales in the U.S. have cooled. The $9.3 billion market grew a mere 2% last year, according to Euromonitor International. (That follows a nearly 1% sales decline in 2015.)

Handbag makers have no one to blame but themselves. During the boom, the likes of Michael Kors outlet uk, Coach, and Kate Spade kept opening stores, expanding their lower-priced assortments, and flooding outlet stores with their wares, all in a bid to outdo one another.

The satchel surfeit led to discounting, which in turn slammed profit margins and cheapened their brands. Adding to the pain was the shift away from big, flashy bags to smaller, discreet, and less expensive cross-body fake bags.

Among the major U.S. brands, Coach reacted early to handbag fatigue, going higher-end again. Now half the bags it sells cost more than $400—up from 30% a year ago. Kors is trying to restore its luxury aura by pulling its wares from department stores. And Kate Spade simply put itself up for sale.

The struggling department stores are eager to see the traffic-generating cheap handbag market perk up. “We’ve got to get the big guys on track,” Macy’s CEO Terry Lundgren recently said.

It’s not that shoppers don’t want any more bags. cheap Michael Kors CEO John Idol recently said the company had sold 11% more units last quarter. But too much of the product is still heavily discounted, and training shoppers to pay full price again may take a while.A version of this article appears in the March 15, 2017 issue of Fortune with the headline “Fashion’s Great replica Handbag Crash.”

Replica Michael Kors, You’re No Louis Vuitton

The must-have item this season isn’t Saint Laurent’s crystal boots or Balenciaga’s triangle duffle replica bag, it’s a conglomerate structure.

Luxury houses with multiple brands are winning. That’s prompting other groups to bulk up, the most recent being Michael Kors Holdings Ltd., which splashed out $1.4 billion on upmarket shoe maker Jimmy Choo.

But a shopping spree worthy of Carrie Bradshaw doesn’t guarantee success. Those companies set on being the next LVMH have a tough road ahead.

That’s no accident. Each has a broad stable of labels that helps offset weakness in any one division. They have large geographic footprints and stores in all the main shopping destinations, which is useful given travelling luxury consumers’ propensity to fall in and out of love with different regions.

For LVMH in particular, having a presence in markets such as spirits and travel retail can provide early warnings of shifts in shoppers’ sentiment before they hit fashion and leather goods.

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Its little wonder, then, that mono-brand businesses want in on the act.
When it comes to bling, bigger certainly seems better. LVMH and Kering have been among the fastest-growing luxury goods groups.

The deal also lessens Kors’ dependency on replica handbags, and may lift the share of sales from footwear to 17 percent from 11 percent.

Although synergies in luxury can be hard to come by, there are scale advantages, such as buying advertising and securing stores in the best locations.

There is also scope for critical knowledge-sharing, which may be an advantage for Kate Spade after its recent acquisition by Coach Inc. The parent knows a thing or two about how to restore an overexposed name, so has the experience to help its new line manage its excessive availability.

That adds to the benefits for Kate Spade from the purchase — according to Simeon Siegel, a retail analyst at Instinet LLC, its wholesale business is $100 million larger than Coach’s, even though Coach dwarfs it in total revenue. That suggests it’s significantly exposed to the troubled department store business and that there’s an opportunity to pull back from this channel to protect the health of the brand.

But bulking up is not without risk.

To make it work, big groups need to have a cash cow at the center, such as LVMH’s Louis Vuitton, Kering’s Gucci or Cartier at Richemont. It’s not clear whether the namesake labels at Coach and Kors are as robust as they need to be to weather shifts in shoppers’ tastes and continue generating cash even during trickier times.

Multiple brands haven’t protected either Richemont or Swatch Group AG from the pernicious downturn in the high-end watch market. And while Richemont has built scale in watches and jewelry, its experience in fashion and leather goods has been more mixed. Chloe is firing on all cylinders, but Dunhill has been restructured and Shanghai Tang sold off.

As Gadfly has argued, Coach and Kors’ strategy of becoming multi-brand retailers is the right one. But, it will be no easy task. Indeed, all that pulling Kate Spade from department stores will weigh on Coach’s earnings this year. Both companies’ valuations are below that of the Bloomberg Intelligence luxury peer group, although Coach is nearer to the average. That is justified given that it has more acquisition experience, having already added Stuart Weitzman. Indeed, it was seen as a more natural buyer of Jimmy Choo than Michael Kors outlet uk.

These aspiring U.S. luxury powerhouses do seem to be aware of the risks. Kors executives have said they expect to significantly raise the operating margin at Jimmy Choo, and will look for efficiencies in areas such as distribution and information technology. But they are also committed to Jimmy Choo maintaining a good bit of independence and wouldn’t give much consideration to things like combining sales forces or relying on the same factories.

That underlines the delicate balancing act when it comes to building luxury behemoths: exploiting scale without damaging the identity of individual brands.

Michael Kors replica handbags shares surge as handbag outlook brightens

Michael Kors relica handbags Holdings reported better-than-expected quarterly results on Tuesday and lifted its annual revenue forecast as it opened more stores and benefited from strong demand in China, sending its shares soaring 18 percent.

The US fashion accessories maker also for the first time provided an estimate of revenue from its recently announced deal to buy upscale shoemaker Jimmy Choo.

Once the hottest name in affordable luxury, replica Kors has been grappling with declining same-store sales as more people shop online.

Over-distribution of its products and a reliance on promotions to boost sales also eroded some of Kors’s brand value, losing its appeal with customers.

Kors’s same-store sales result in its latest quarter capped an eight-quarter streak of declines, but the drop was lower than anticipated as the company cut back on discounting and also attracted tourists from China and Russia.

Same-store sales fell 5.9 percent in the first quarter ended July 1, compared with the 8.9 percent decline analysts polled by Consensus Metrix had expected.

Total revenue dipped 3.6 percent to $952.4 million, but handily beat analysts’ average expectation of $918.6 million, according to Thomson Reuters I/B/E/S.

Revenue was boosted by the opening of 67 new stores worldwide as well as a 60 percent surge in sales in Asia helped largely by the acquisition of a Greater China licensee.

Net income attributable to replica michael Kors handbags fell 15 percent to $125.5 million, or 80 cents per share. Analysts had expected 62 cents.

Michael Kors outlet uk, which agreed to buy Jimmy Choo last month, said it expects the deal to add about $275 million to revenue in the second half of the year ending March 2018. The estimate assumes that the deal will close by the third fiscal quarter.

Kors said it now expects fiscal 2018 revenue of about $4.28 billion, slightly higher than the $4.25 billion it had expected earlier. The forecast does not include results from Jimmy Choo.

Shares of Kors, down about 13 percent this year, were up 17.6 percent at $43.80 in premarket trading. The stock was on track to hit its highest level since January.

Michael Kors replica handbags Shares Surge as Turnaround Shows Promise

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Michael Kors replica handbags Holdings Ltd.’s strategy to entice shoppers and get them to pay more for its luxury apparel and handbags is showing some signs of success.

Profit and sales in the quarter that ended in July both exceeded analysts’ estimates, driving the shares up as much as 14 percent in early trading.

The fashion house has been refreshing designs and sprucing up stores to lure customers to pay full price for products, while reducing department store markdowns, which have eroded its brand cachet. Last month, Michael Kors outlet uk agreed to buy shoemaker Jimmy Choo Plc for $1.2 billion to add lustre to the brand, and Chief Executive Officer John Idol said he’s planning for more acquisitions to boost growth.

The strategy is akin to that of rival Coach Inc., which bought shoe brand Stuart Weitzman in 2015 and replica handbag maker Kate Spade & Co. in May. While replica Michael Kors is shuttering as many as 125 retail locations in the next two years as part of its turnaround plan, it ended last quarter with 67 more stores than it had a year earlier– a total of 838.

“Investors have been afraid that Michael Kors replica bags was on a downward spiral, but this result appears to show them emerging from that black hole,” said Simeon Siegel, an analyst at Instinet LLC. “With better-than-expected numbers,fake Michael Kors can work to regain the permission to charge full price” to customers, he said.

While same-store sales — a closely watched measure — fell 5.9 percent, that was far less than the average 8.9 percent estimate of analysts, according to Consensus Metrix. Idol said the company saw better-than-expected results in both North America and Europe.

Shares of the company climbed as high as $42.60 in premarket trading. The stock had declined 13 percent this year through Monday’s close.

Excluding some items, profit was 80 cents a share last quarter. That topped analysts’ average 62-cent projection. Sales fell 3.6 percent to $952.4 million, compared with estimates for $919 million.

The most replica michael kors compared

Shares of Michael Kors surged after the company’s fiscal first-quarter 2018 results beat analyst estimates. The maker of luxury replica handbags and apparel also raised full-year guidance.

Cheap Michael Kors reported earnings of $0.80 per share, exceeding the consensus analyst forecast of $0.62. Meanwhile, the company’s same-store sales fell just 5.9%, less than the 8.9% contraction expected by analysts.

“Our first quarter performance exceeded our expectations, driven largely by better than anticipated retail comparable sales results in both North America and Europe,” chairman and CEO John D. Idol said in a statement. “We are encouraged by our first quarter performance, although we continue to believe that fiscal 2018 will be a transition year for our company, as we focus on laying the foundation for the future by executing on our strategic plan.”

The company is fresh off a $1.2 billion acquisition for shoemaker Jimmy Choo, and Idol said he’s hoping to do more acquisitions going forward.

The stock increase is welcome news for replica Michael Kors shareholders, who have seen the price fall 28% since reaching a three-month high on May 9.

Following the earnings news, shares of Michael Kors outlet uk spiked 12% to $41.62 a share as of 7:57 am ET.

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.