President Donald Trump said on Monday that China is ready to come back to the negotiating table and the two countries will start talking very seriously.Politicsread more
The escalating trade war between Washington and Beijing dominated discussions at the G-7 gathering in France.Politicsread more
China's state media is putting up a brave front as the country's trade war with the U.S. escalated sharply over the weekend.China Economyread more
The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties.China Economyread more
U.S. stock futures surged Monday morning after President Trump said China is ready to come back to the negotiating table following a phone call Sunday and the two countries...Marketsread more
As Washington and Beijing continue to up the ante in their protracted trade fight, the potential of a recession in the U.S. is now "the biggest concern," according to Standard...US Economyread more
Tensions stemming from the U.S.-China trade war escalated sharply over the last few days, with much happening as Asian markets were shut down for the weekend.China Economyread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
Neither the U.S. nor China wants to be seen as the party that derailed trade talks, says William Reinsch of Center for Strategic and International Studies.World Economyread more
China said Friday it will be resuming 25% duties on U.S. autos, and a further 5% on auto parts and components.Asia Marketsread more
World leaders, environmental groups and celebrities have publicly decried the vast swaths of forest being destroyed by the fires.World Newsread more
So goes New York City, so goes the rest of the country.
At least, that appears to be the trend when it comes to predicting a fashion brand's sales. And if Michael Kors follows in the footsteps of fellow handbag companies Vera Bradley and Coach, things don't bode well for the affordable luxury label.
According to analysis by Sterne Agee's Ike Boruchow, when New York City shoppers were searching for Coach handbags on Google more frequently than U.S. customers, the brand's comparable-store sales increased for six straight quarters.
When this trend reversed in January 2011, however, the label's same-store sales "began a downward trajectory" the following quarter, Boruchow said. Two years later, Coach's domestic comparable sales were negative.
Similarly, after posting comparable-store sales gains of 20 percent or higher throughout 2009 and 2010, eight quarters after New York City Google search trends reversed, Vera Bradley's same-store sales turned negative.
"This finding bodes poorly for Michael Kors (where online searches in NY began tapering off over two years ago), as it implies that negative U.S. comps are on the horizon," Boruchow wrote in a note to investors Tuesday.
Analysts have been eyeing Kors' same-store sales deceleration as signs that the fledgling brand is reaching maturity in the U.S.
After posting several quarterly comparable-sales gains near 40 percent following its initial public offering in 2011, Kors' U.S. same-store sales trends have slowed over the past two years, ending the most recent quarter up 6.8 percent on a constant currency basis.
Despite the slowdown, it was the company's 13th consecutive quarter of revenue, comparable-store sales and earnings growth. On that earnings call in February, CEO John Idol identified six areas of growth for the luxury brand, including new store openings and expanding its presence in menswear and jewelry.
On the other end of Boruchow's analysis is another luxury label, Kate Spade. He noted that the brand is still being searched on Google more in New York City than the rest of the country, and the spread continues to widen. That indicates the company is gaining more acceptance from trendsetting shoppers in NYC, he said.
"This bodes well for Kate Spade's short- and long-term growth prospects," he said.