Jennifer Prentice, a medical- equipment saleswoman in Minneapolis, once had no qualms about dropping $600 or more for Gucci purses. Now she spends $300 for Coach Inc. bags and is filling in her Burberry wardrobe with pieces from J. Crew.
Coach Inc., the largest U.S. luxury handbag maker, reported fiscal third-quarter profit that beat analysts’ estimates, helped by demand in North America, and said it may sell its Reed Krakoff brand. The shares jumped.
Michael Kors Holdings Ltd., named for the designer who founded the company, rose to the highest price since its market debut after forecasting profit for fiscal 2013 more than double that reported a year earlier.