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Kate Spade Cuts Back on Sales to Be More Exclusive

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Photo: Getty Images
Photo: Getty Images

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In an effort to avoid the pitfalls of overexposed brands like Coach and Michael Kors, Kate Spade is adopting a no-sales strategy when it comes to selling product. In the company's most recent earnings report, Kate Spade executives told analysts that they were cutting back on the "40% off your purchase"-type sales and removing Kate Spade product that is sold in department stores from those sales as well, the Washington Post reportsThe company is also scaling back on outlet store expansion, as that can become a problem area for a brand trying to maintain its exclusivity.

In other news, Kate Spade posted a $55 million dollar loss due to its decision to shutter its contemporary brand, Kate Spade Saturday. The brand plans to continue the concept as a weekend-wear line sold under the main Kate Spade line.