The contemporary handbag market has had a bummer of a summer.
With 2015 now in its second half, major handbag players are citing an increased downturn in sales, particularly within the contemporary arena. The softening of the market was never more apparent than with the most recent financial results from three major U.S. players — Coach, Michael Kors and Kate Spade New York — reported this month. On Aug. 6, Michael Kors said for the first quarter ended June 27, net income fell 7.1 percent to $174.4 million, or 87 cents a diluted share, on a 7.3 percent gain in revenues to $986 million. A day prior, Coach reported that for the quarter ended June 27, profits declined by 84.4 percent, following an 11.6 percent decrease in sales. Kate Spade fared slightly better, with second-quarter results swinging a profit — a net income at $8.5 million, or 7 cents a diluted share, versus the year-ago net loss of $4.4 million, or 3 cents.