In the first couple of years after its initial public offering, it seemed as if Michael Kors sales would soar for perpetuity. However, over the past year to 18 months, Kors began to look more like a brand bubble and investors started reversing course. The stock has shed 49 percent over the past year.
Kors now has to work a little harder to maintain its cool factor as it walks a fine line between expanding its product offerings to grow market share, without losing its premium status.
In the Baird survey, consumers showed improved sentiment for Michael Kors handbags, though Baird estimated Kors ceded some market share.
The brand was deemed "on the way up" in Morgan Stanley's AlphaWise survey, with consumers showing increased "likeliness to buy in next six months."
However, the results of Piper Jaffray's survey raised some concern. While Michael Kors is still the most preferred handbag brand among females in both the upper- and average-income sets, the spread between the two groups' preferences has never been wider in the survey's history. As a result, Piper Jaffray said "this brand is in unhealthy territory."