Handbag Sales Gains May Have Peaked As Competition From Shoes And Jewelry Heats Up And Higher Gasoline And Mortgage Costs Slow Consumer Spending.
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Outlet discount bags handbag ohandbag margins declined due to falling sales at high margin full priced stores ebitda margin for its handbag business declined from an estimated 41% in 2007 to 33% in 2009, attributable to increasing share of handbag sales coming from factory stores rather than higher margin sales at full priced stores. Factory stores offer goods at discounted prices, offering lower sale margins compared to full priced stores. The mix shift in demand was driven by rising value consciousness amongst consumers during the economic downturn.
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Handbag specialist kate spade has come a long way since its first store opened in soho, new york, in 1996.