Kate Spade Was Charged With Price Fraud. What'S The Matter?

Recently, Kate Spade, the US luxury brand, was accused.

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There are consumers who sue in a brand discount shop. Kate Spade is selling discount products at a false retail price, and the brand never sells any product at that retail price.

Before this incident, Michael Kors, another lightweight luxury brand, also had similar experiences.

At the beginning of this year, Michael Kors was sent to court for similar reasons, and finally had to pay $4 million 880 thousand.

Reconciliation.

According to

In the indictment, the plaintiff purchased a Kate Spade handbag for $142, while the Kate Spade Outlet's promotional information for the handbag was "70 percent off of the retail price of $355". In fact, the handbag had never been sold at a price of 355 dollars, but on the contrary, it had been selling for 142 dollars, that is, the so-called discount had never been made.

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Kate Spade&Co sales rose 10.7% to $277 million 300 thousand in the three quarter.

Sales in North America increased by 18.5% to $228 million 500 thousand a year, faster than the 13% in the two quarter, while international sales fell 15.8%, from 50 million 906 thousand dollars a year earlier to $42 million 870 thousand.

The strong growth in the North American market is the impact of the group's accelerated handover style and tight control of inventory to avoid exposure to the North American market's demand for handbags.

On the contrary, Kate Spade & Co. biggest competitor Coach (Coach) and Mike Kors (Michael Kors) have been weakening in recent years. In the recent quarter, the former North American same store sales recorded a 9.5% decline, while the global same store sales fell by 8.5% year-on-year, while the constant exchange rate decreased by 3.4%.

In addition, the group announces that it will open the Kate Spade New York flagship store in Regent Street in Regent Street, London, in 2016, which will be the fourth British store of the brand.

At present, Kate Spade & Co. has 101 stores and 63 discount stores in North America, a net increase of 17 and 7 respectively over the same period last year.

There are 20 brand stores in the international market Kate Spade New York, 13 less than the same period last year, 52 counters for discount counters and 13 outlets, with a year-on-year net increase of 3.

Kate Spade & Co. CEO Craig A. Leavitt said in the quarterly report that although the group had deliberately reduced some sales promotions in the three quarter, it still recorded the same store sales performance of the leading industry: the same store sales increased by 16%, far better than the market expectations of 11.8%.

He said the group would continue to introduce new product categories cautiously, enter new markets and control distribution outlets to attract new customers and retain old customers.

In addition, Craig A. Leavitt also revealed that three quarter 11% sales growth came from more diverse product offerings and new product categories.

In recent years, Kate Spade & Co. has finished the Kate Spade Saturday and Jack Spade product line in succession, and has shifted the focus to the expansion of core brands Kate Spade New Spade, such as home, children's wear, sportswear and other lifestyle categories to increase revenue sources.