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Monday, April 6th, 2009
The $ 7 billion U.S. market for handbags, the fastest growing products in the fashion industry, may slow growth record.
U.S. sales increases that peaked at 28 per cent in 2004, the highest ever recorded, may not yield as low as 15 per cent this year and showing no signs of returning until at least 2009, according to the New York-based stock research firm Telsey Advisory Group.
"The company has softened purse a little," said Kathryn Deane, president of New York Fashion Tobe-Consulting company. "When the consumer looks at accessories, she does not just look handbags and more. "
U.S. May bag sales gains have reached a Summit competition shoes and jewelry is warming and rising fuel and mortgage costs slow consumer spending.
Gain LVMH Moet Hennessy Louis Vuitton SA in sales of Fashion and Leather Goods May slow below 11 per cent of the Paris-based company recorded in 2006, said John Guy, an analyst at MF Global Securities in London.
U.S. sales of handbags costing at least $ 100 in May expand 20 to cent this year compared to 22 percent last year, according to New York-based Coach Inc., which says it is the U.S. leader with a share of market by 31 per cent. Handbag demand ignited in the 1990s.
"Slower growth in the handbag segment overall is outlook cautious given the economic situation we find ourselves in right now, "said Patricia Edwards, who helps manage 11.9 billion, including Coach shares, at Wentworth, Hauser & Violich in Seattle.
Coach part of a positive market outlook, spokeswoman Andrea Resnick said. The projected U.S. sales gain of 20 percent is an extension of five years of gains, Resnick said.
Handbag makers, led by Coach and Louis Vuitton, will compete for the attention of consumers who spend money on Tory Burch ballet flats and David Yurman bracelets, Retail executives said.
"It used to be all about the shoes and our woman had so many shoes in his closet, then He became the multiplicity of handbags replica designer, Saks Inc. Chief Officer Stephen Sadová told investors at a conference of Goldman Sachs Group Inc. September 6. "What you see now is a new trend, which is the Designer Jewelry Brand fine. "
Coach expects its total revenues worldwide sales increased 21 percent year to 28 June, 2008, Chief Financial Officer Michael Devine told analysts meeting at its headquarters September 7. This is below the 28 percent increase in year prev. Handbags accounted for 64 per cent of sales of buses in the year ended June 30.
Louis Vuitton has found that "growth in the luxury segment of the U.S. market continues to accelerate on an annual basis," Molly Morse, a spokesman said refuse to provide figures.
Handbags are still the fastest growing part of the U.S. fashion industry, then earrings, wallets and other small leather goods, according to NPD Group Inc., a research firm Market in Port Washington, NY
A survey of 1,550 consumers Goldman published in June, found that 32 percent intend to buy handbags least this year. About 18 percent said they would buy more and 51 percent said they intended to buy the same number.
The report highlights the positive outlook for the coach. "The survey strongly supports our positive view on the prospects of the coach," Margaret Mager, an analyst at Goldman, has writing.
Cristin Murphy reflects the limits to record demand. Murphy, who lives in Aliso Viejo, Calif., said spending on bags peaked in 2003, and his wardrobe bag includes five Coach, two Prada, a Burberry and Kate Spade.
"I made my type of investment in href = "http://www.colapin-bag.com/" target = "_blank"> handbags replica, "said Murphy, 35.
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