Fashion designer Michael Kors NYSE: KORS continues to rip pages from the playbook rival handbag maker Coach NYSE: COH has long since discarded, which helps to explain why Kors is on the decline and Coach is rising.

Michael Kors seemed to copy everything Coach did following its successful IPO back indeveloping a robust mix of retail stores, factory outlet shops, and partnerships with department store chains for its handbags and fashions, while also expanding internationally.

Michael Kors Handbags | Michael Kors Totes, Shoulder Bags & More - Jomashop

It had been a recipe for meteoric growth when Coach implemented it, and it generated dramatic results for Kors too when it pasted the plan onto its own business model. But Coach soon realized there was a problem: All the discounting it was doing was undermining the cachet it had built into its aspirational luxury brand.

When a customer pays thousands of dollars for a leather bag at one of a brand's full-price retail stores, only to see someone else paying just hundreds for something similar at its outlets, they grow less likely to return to the full-price store again.

Coach's sales and profits took a sickening, multi-year plunge as customers abandoned the handbag maker, which was no longer seen as a true luxury brand, but rather one that just about any mall rat could and did buy. The exclusiveness of Coach was tarnished, and its stock suffered. Coach learned the lesson, and sharply curtailed discounting while putting the brakes on opening new outlets.

Just last month, it also said it would no longer participate in the store-wide sales that struggling department stores were running to attract customers, because it didn't want to repeat the mistakes of the past. Michael Kors, it seems, has yet to learn that na czym polega dzwignia forex, as the designer cachet it once possessed has faded.

For one upscale retailer, in fact, the decline has gone too far: JWN is apparently pulling certain lines of Kors bags from its shelves because of quality issues, and also will stop carrying other lines that rival Macy's NYSE: M continues to sell and offer at a discounted forex signale kaufen. The results of hewing to Coach's old playbook too closely have been noticeable on Kors performance.

It now appears that high-end retailers are doing for Michael Kors what it should be doing for itself, but until it finds a way to restore its lost luster, the fashion designer is going to continue having problems.

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KORS Stock Price - Michael Kors Holdings Ltd. Stock Quote (U.S.: NYSE) - MarketWatch

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Michael Kors Has a Coach Problem By Investopedia May 26, — 2: Analysts are unhappy with the promotional strategy, which could be bad news for Michael Kors and even its main rival. Michael Kors is struggling with retail market conditions and will close over stores. Is the discount enough to ignore the risks? There was much excitement for the Michael Kors Access Watch, but did it live up to the hype?

It doesn't seem as if high-end fashion retailer Kate Spade NYSE: KATE is lacking potential suitors. According to Bloomberg, citing "people familiar with the matter," both Coach NYSE: Einhorn's recent F reveals that Greenlight Capital sold the entirety of its stake in the apparel company.

Coach's shopping spree was well-planned. Could a slowdown in the handbag industry lead to more consolidation? The NYC-based luxury fashion brand continues its upward momentum as analysts lift forecasts. Michael Kors has expanded its Access lineup of smartwatches.

Michael Kors Holdings Limited (KORS) Analyst Research - wugadukucevu.web.fc2.com

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