>> Shares of luxury handbag and apparel maker Kate Spade soaring Wednesday on word the company is looking to sell itself. The stock up as much as 21% after Dow Jones reported the company is seeking offers under pressure from an activist investor unhappy with the company's dismal stock performance.
But it's stock price, which has cratered since 2014, reflects the overall weakness in the retail sector. But doesn't tell the whole story, says Thomson Reuters retail analyst Geuron Martis.>> Kate Spade has been one of the top performers in the retail universe for some time right now. And has one of the strongest same store sales estimates for the holiday season.
And this is mainly because they appeal very well to the millennials, whoare just a very fickle group. The millennials also make up the biggest group of the US consumers right now. So winning over this group is very key for any retailer.>> Kate Spade has also maintained its brand image by selling more products at full price.
Even as rivals Michael Kors and Coach have heavily discounted their lines. As for potential buyers, retail experts say Coach could be a good new home for Kate Spade.