Slump at Coach and Michael Kors to Continue, Analysts Say
Shares of handbag makers Coach Inc. and Michael Kors Holdings Ltd. took a hit on Monday after analysts warned that slumping sales will coach factory outlet probably continue.JPMorgan Chase & Co. downgraded Coach to a neutral rating from the equivalent of a buy, saying the brand’s overhaul hasn’t yet resonated with shoppers. Piper Jaffray Cos., meanwhile, lowered its earnings estimates and price target on Kors, citing a buildup of inventory at chains like Macy’s Inc. and Dillard’s coach outlet online Inc.
The strong dollar has kept tourists from buying as much Kors merchandise in the U.S. — a situation that will probably get worse before it gets better, JPMorgan said in its report. Sales of wristwatches also are sluggish, Piper Jaffray found.“Watches remain under pressure in the U.S. and are starting to coach outlet stores slow in Europe,” Erinn Murphy, a Piper Jaffray analyst, said in her report.Coach fell as much as 4 percent to $29.95 in New York, the biggest intraday decline since May 27. The stock was already down 17 percent this year through the end of last week. Kors tumbled 7.3 percent to coach black friday $38.92, which was also the worst performance since May 27. The shares have now lost almost half their value this year.
Most of the shock value of Coach releasing a bag with a four-figure price tag wore off years ago, but the disparity between the prices of the Coach Madison Calf coach outlet store online Hair Brynne Satchel and the Coach Madison Ocelot Sabrina Satchel truly caught be off guard.
The Brynne, left, is made of printed calf hair with leather trim and is 14 inches wide. The Sabrina, on the right, is nylon with leather trim and measures 12 inches across. If you had shown me coach outlet online coach factory outlet the bags and asked me to guess, I would have pegged the Brynne at about $700 – one of Coach’s pricier offerings, but not out of the brand’s normal range these days. The Sabrina would have been much lower, probably about $300. On one count, I would have been remarkably close coach factory (not much of an accomplishment, considering that this is my job); on the other, not so much.
The nylon Sabrina, as I had guessed, is priced at $298. On the other hand, the coach outlet slightly larger Brynne, rendered in calf hair, rings up at a whopping $1400. Surely there’s a large difference between the wholesale prices for calf hair and nylon, and likely increased difficulties in processing, dying and sewing calf hair, but an $1100 difference for a brand whose bags normally cost far less than a thousand dollars is a bit quizzical.
Coach has many, many loyal fans who love the brand’s bags (not to mention the many other products it now coach factory online offers), and I can’t help but think that those enthusiastic Coach customers have to be the primary audience for such an expensive bag. For $1400, I’m running straight to Balenciaga. Then again, that’s my favorite brand, so I can understand the why Coach fans feel the way they do about their www.coachoutlet.com/store label. For that amount of money, though, I’d suggest they buy the Sabrina (which would even be useful in the rain!) and save the other $1100 for two or more future Coach purchases.
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