Representatives from the Chinese side say they think it likely that Chinese President Xi Jinping will attend the G-20 meeting later this month. But in order to reach a trade...China Economyread more
Software engineers straight out of college often make six-figure salaries, not counting equity compensation.Technologyread more
Wall Street, though, is clamoring for a rate cut, with an 85% chance of a move in July and a 61% probability of three reductions by year's end.The Fedread more
A company spokesperson said the outage was the result of a "an internal technology issue" and was not security related.Retailread more
The flattening of the yield curve is exuding a bad omen for the stock market if history is any guide.Marketsread more
Using MIT's living wage calculator, CNBC Make It mapped out the minimum amount a single parent must earn to meet their basic needs without relying on outside help in every...Earnread more
Hong Kong Chief Executive Carrie Lam announced at a press conference on Saturday that a contentious bill to allow extraditions to mainland China has been put on hold.China Politicsread more
Stratolaunch, the world's largest airplane, which flew once, is up for sale, sources familiar told CNBC.Investing in Spaceread more
Transparency is key… or is it? With the first-ever non-transparent, actively managed exchange-traded fund receiving approval from the SEC, "ETF Edge" goes straight to the...ETF Edgeread more
Mired in a crisis over its best-selling 737 Max plane, Boeing could hand the spotlight over to its rival Airbus at the Paris Air Show.Airlinesread more
A new update to the Apple Watch called watchOS 6 will notify you if the environment you're in is too loud and could damage your hearing.Technologyread 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.