Dallas, Texas 07/09/2015 (Financialstrend) – Kate Spade & Co (NYSE:KATE), the national brand in luxury handbags stock performance in the past year has been anything but disappointing. Though the company does hold promise, given strong fundamentals, it appears to be heading southward due to a bearish curve.
The continued downward slide of the stock prices is despite the luxury brand posting favorable growth rates in its latest quarterly report. Analysts believe that investor focus on the top-line numbers of the company have led to the bearish-trend in recent weeks. In the past year, the company decline has been nearer the 37% market. Investors appear not to be comfortable with the current metrics of the company, even as Kate Spade & Co (NYSE:KATE) sharply focuses on expansion.
The branded products by Kate Spade &Co. are expected to soon be available on ecommerce platform, besides being sold in overseas markets.
Therefore, the large growth opportunity has to be viewed as the upside by investors, recommend several bullish analysts on this stock. The demand for luxury lifestyle articles as those offered by Kate Spade & Co are expected to have a strong market presence, despite the flurry of competing brands. Fashionable, diverse in style and composition, Kate Spade & Co (NYSE:KATE) products are expected to pip most other brands on the price factor, suggest analyst firms. Besides, the inflections in the foreign currency rates and the strong US Dollar too have impacted the sales of most luxury handbags brands. Kate Spade’s smaller footprint works to its advantage, while larger players such as Micheal Kors and Coach near saturation points in terms of market ruling. Hence, Kate Spends opportunity is now, as it makes inroads to capture market share, even though the industry struggles with a slowdown.
Kate Spade & Co (NYSE:KATE) has strategically revised its market presence and quickly pared down on its online flash sales, hoping to build a branding reputation of an upscale lifestyle brand with both value and ‘vision.’
