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Brand Battles: Michael Kors vs. Kate Spade

Friday, June 06, 2014 - 02:26

June 6 - In this round of brand battles Kate Spade takes on Michael Kors in the red hot handbag department. Find out who's got the upper hand.

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It's the -- status symbol in women's fashion. The luxury handbag. Leading the pack my coolers and the onetime Project Runway star whose logo heavy line screens bullying and jet set style. In hot pursuit. Kate's face with the wealthier clientele and a look -- stateside plastic sheet. To who's got the upper hand on the surface these bags looks similar and set you back about the same amount the let's take a look inside both brands. Think when you look now. Global global -- on the whole total revenue piece of the pie. It's corps' records has about 1718% market share. It's a three billion dollar company they're dominating. In the US in terms of retail sales and wholesale distribution growth. Kate Spade is more Bay Area early stage growth this is only a 740. Million dollar business this is the size of course very happy years ago. But of course 2011 IPO was the biggest ever in US fashion history. With the stocks soaring nearly 300%. Since its course have this competition in the bad. Not so fast -- -- had a hot hand since being bought by Liz Claiborne in 2006. Now called Kate Spade. The company sold other interest to focus on its start brand. Rolling out stores and introducing less expensive lines. But when I look at Kate -- What I like is it's very controlled growth they very much -- like I say to themselves we're going to. Control the brand we're gonna build the brand out and number gonna take the next step. So I think anytime anyone is that strategic. You certainly need to be paying attention to what they're doing. In Europe course gives Spain and the cold shoulder with course stores poised for explosive growth. Still state has the edge in Asia so if -- -- gambler who would you open your personal I've. I would say Kate Spade is is -- as the stock we like the most is more ways to win when you look at the revenue base the market share in the operating margins. I think there's a lot of room for growth for the next five years whereas with Michael -- -- think that with a renowned fashion brand at a tipping point where you -- grows fast -- the profitability so on and so I was that was. --

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Brand Battles: Michael Kors vs. Kate Spade

Friday, June 06, 2014 - 02:26