Coach, Purse Sellers Gains May Slow as Jewelry Shines
Oct. 9 (Bloomberg) -- The $7 billion U.S. market for handbags, the fastest-growing product in the fashion industry, may be slowing from record growth.
U.S. sales increases that peaked at 28 percent in 2004, the strongest on record, may give way to as little as 15 percent this year and aren't showing signs of returning until at least 2009, according to the New York-based stock research firm Telsey Advisory Group. The firm was founded by retail industry analyst Dana Telsey, whom Institutional Investor magazine ranked as the top specialty stores analyst for seven years through 2005.
``The handbag business has softened up a little bit,'' said Kathryn Deane, president of New York fashion-consulting firm Tobe, whose clients have included Macy's Inc.'s Bloomingdale's, Nordstrom Inc. and Neiman Marcus Group Inc. ``When the consumer looks at accessories, she is not just looking at handbags anymore.''
U.S. handbag sales gains may have peaked as competition from shoes and jewelry heats up and higher gasoline and mortgage costs slow consumer spending.
LVMH Moet Hennessy Louis Vuitton SA's gain in sales of fashion and leather goods may slow below the 11 percent the Paris-based company recorded in 2006, said John Guy, an analyst at MF Global Securities in London. Louis Vuitton doesn't provide revenue figures for units.
PPR SA's Gucci and the closely held handbag makers Dooney & Bourke Inc. and Prada SpA declined to provide sales forecasts.
20 Percent
U.S. sales of handbags costing at least $100 may expand 20 percent this year, compared with 22 percent last year, according to research from New York-based Coach Inc., which says it's the U.S. leader with ...