Kate Spade recorded total sales of $1.3 billion over the past twelve months. By comparison, its close competitors Michael Kors (KORS) and Coach (COH) generated sales of $4.7 billion and $4.3 billion, respectively.
Coach operates more than 1,000 stores worldwide. It was established as early as 1941 and pioneered the American affordable luxury industry. However, with increasing competition from new entrants like Michael Kors, Kate Spade, and Tory Burch, the company’s market share eroded, and its same-store sales have gone downhill.
Michael Kors, on the other hand, has been quick in growing its market share. It expanded from about 350 company-operated retail stores at the end of March 2013 to 670 stores at the end of March 2016.
Kate Spade, by comparison, is a much smaller company and operates 260 stores (at the end of April 2016). Its products target Millennials, are typically more colorful and have smaller logos. In recent times, the company has shifted its focus to smaller bags to meet the changing customer preferences.
View more information: https://marketrealist.com/2016/07/kate-spade-placed-american-affordable-luxury-segment/