Kate Spade May Merge With Coach Or Be Sold To Highest Bidder

melissatrv

O.G.
Feb 8, 2009
11,272
1,577
NC
Apparently KS is in trouble and a sale is inevitable

http://www.retaildive.com/news/coach-michael-kors-reportedly-eye-kate-spade-ahead-of-auction/434539/

MK and Coach are having the same financial issues and analysts feel they problem is millennials lack of interest in bags. Which very well may be part of it. I know my daughter is that age and could care less about bags. But I have also noticed another trend - Kate Spade has had less frequent sales. Additionally their bags this past year have been excluded from limited exclusion sales at Macy's etc. Same with Coach and Coach's prices have increased significantly.

When KS does have a sale I see fewer (coupon sales) where you take an additional 25 or 30% off sale bags. They have them, but they are far less frequent. I think Coach and KS buyers got used to lower bag prices and these changes have hurt their sales.

Thoughts on the merger or why you think sales have declined?
 

bluejay21

Looking for my bag
Oct 1, 2011
131
30
Virginia
Aww. Kate Spade is still one of my favorite brands. I love the whimsy of it.

I think they should just focus on classic pieces and cut back on sales. They were kicking off sales a lot, especially in the outlets. Also, reduce the number of stores that can carry their merchandise.
 
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Murphy47

Member
Jul 9, 2012
6,923
6,745
Aww. Kate Spade is still one of my favorite brands. I love the whimsy of it.

I think they should just focus on classic pieces and cut back on sales. They were kicking off sales a lot, especially in the outlets. Also, reduce the number of stores that can carry their merchandise.
Kate Spade is still hot where I live, though I think the trend has peaked.
Not a surprise that millennials don't buy bags: so many are flat broke.
I had thought KS was purchased by Liz Claiborne company?
 
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leechiyong

Member
Sep 3, 2013
10,504
14,256
Bah, I love Kate Spade. It follows trends without the jaw-dropping price tag while still being nice.

The trends for designer bags seem to sway towards under-the-radar brands or saving up for premier bags. To me, honestly, brands need to shift from trying to constantly trying to increase profits and sales and figure out where their sweet spot is in terms of profitability. They seem to panic when their market share isn't increasing and to me, that's ludicrous because it's based on trends and when your brand is the trend, inevitably, it'll pass, especially when you're focusing on the aspirational market. You can't expect that growth constantly.
 

COACH ADDICT

"We're all born naked and the rest is drag" RUPAUL
O.G.
Apr 27, 2009
11,416
230
54
An ever changing life with Steady Love...
I have also notice this trend in younger women and young girls. My daughter is 12 and she comes from a home of women (my mom, two sisters and me) that love purses and unless that bag is very unique she does not care.. As she is not as bag specificate as I am if she like the look and size she is good.
 
Mar 30, 2015
362
323
Bah, I love Kate Spade. It follows trends without the jaw-dropping price tag while still being nice.

The trends for designer bags seem to sway towards under-the-radar brands or saving up for premier bags. To me, honestly, brands need to shift from trying to constantly trying to increase profits and sales and figure out where their sweet spot is in terms of profitability. They seem to panic when their market share isn't increasing and to me, that's ludicrous because it's based on trends and when your brand is the trend, inevitably, it'll pass, especially when you're focusing on the aspirational market. You can't expect that growth constantly.
I agree. I remember fashion before the stock market took over. A whole different world. /:
 

spicestory

Member
Jul 17, 2016
260
160
Bah, I love Kate Spade. It follows trends without the jaw-dropping price tag while still being nice.

The trends for designer bags seem to sway towards under-the-radar brands or saving up for premier bags. To me, honestly, brands need to shift from trying to constantly trying to increase profits and sales and figure out where their sweet spot is in terms of profitability. They seem to panic when their market share isn't increasing and to me, that's ludicrous because it's based on trends and when your brand is the trend, inevitably, it'll pass, especially when you're focusing on the aspirational market. You can't expect that growth constantly.
I agree. Particularly, finding the sweet spot for profitability, as well as, catering to the needs/wants/demand of the [main/primary] target audience/market segment of the [respective] brand(s) are crucial.
 
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Mar 30, 2015
362
323
I think that is why after going on the exchange, St. John bought themselves back. It was a long time ago and I believe that might still be the case. They could not meet the unrealistic margins for profit year after year. I should have kept all my good stuff from the 80s. :smile: (random, I know)
 
Dec 26, 2012
242
154
USA
Funny I am a millennial and I also never cared about bags. Now that I am older though and have a little more money I am buying bags to go with my grown up outfits. The bag I settled on for work was Kate Spade and I love it, plus there was so much care in the packaging.

I think for us money is a huge factor. I can afford Kate Spade but I won't be running out and spending thousands on a designer bag anytime soon (nor am I sure I want to). I still have a mortgage and student loans to pay for and sadly once my lease ends I might have a car loan again unless I can get another killer lease deal and pay up front like last time.

I'd like to start prioritizing retirement funds a little more but I had to focus on getting nicer clothes for work for a bit, that is settling down finally so I will hopefully divert more money back to goals I feel are important while enjoying my new nicer things. :smile:

I hope Kate Spade doesn't go anywhere though I really do enjoy the bag for work and have gotten a few compliments as well.
 

Murphy47

Member
Jul 9, 2012
6,923
6,745
Funny I am a millennial and I also never cared about bags. Now that I am older though and have a little more money I am buying bags to go with my grown up outfits. The bag I settled on for work was Kate Spade and I love it, plus there was so much care in the packaging.

I think for us money is a huge factor. I can afford Kate Spade but I won't be running out and spending thousands on a designer bag anytime soon (nor am I sure I want to). I still have a mortgage and student loans to pay for and sadly once my lease ends I might have a car loan again unless I can get another killer lease deal and pay up front like last time.

I'd like to start prioritizing retirement funds a little more but I had to focus on getting nicer clothes for work for a bit, that is settling down finally so I will hopefully divert more money back to goals I feel are important while enjoying my new nicer things. :smile:

I hope Kate Spade doesn't go anywhere though I really do enjoy the bag for work and have gotten a few compliments as well.
Sounds like you have your priorities in order!!
Bags are just a want not a need.
Even if KS isn't around, something else will come along to take its place.
 
Jul 9, 2015
2,701
2,355
I've been following this story since the end of 2016 and was reading an article earlier on today that share prices have dropped due to Q1 sales/revenue; several articles state how the sale of Kate Spade is looking less attractive to investors as time passes.
 

lcutli1

Lauren
Feb 20, 2016
117
202
New York, NY
I just heard the news. How does everyone feel about this? My initial reaction is NOOOOOOOOOOO. I love Kate Spade! Her pieces -- not just bags, but jewelry and trinkets -- are so whimsical and feminine and just plain fun. That's not the aesthetic of Coach. What do you all think will happen to the Kate Spade aesthetic we know and love with this merger?