Kate Spade & Co. is stripping down its brands to focus on its core brand, and the strategy seems to be working, CEO Craig Leavitt said Monday.
The retailer reported surging sales in the first quarter just last week as it takes on industry heavyweights like Michael Kors and Coach.
“We are quite balanced in the approach of having this aspirational product that’s $600 to $1,300 for that luxury customer, balanced with access points for the millennial customer that wants a part of the brand but can’t spend that,” Leavitt said on CNBC’s “Fast Money.”
Leavitt points to the cross-body bag at $148 as an accessible price for younger shoppers.
He added that he is seeing the most growth internationally, in places such as China, at the higher price points.
“A $600 bag that was just delivered to China is already selling out,” he said. “It’s really exceeded our expectations.”
Shares of Kate are up 16 percent so far this year, far outpacing the S&P retail sector, which is down 5 percent.
Read more at CNBC.