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.