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Tapestry says women are paying more for handbags amid the pandemic

Yahoo Finance's Kristin Myers and Sibile Marcellus discuss why Tapestry is saying more women are spending more on handbags during the pandemic.

Video Transcript

KRISTIN MYERS: Yahoo Finance's Sibile Marcellus, right now, on why some women are actually paying more for their luxury handbags in this pandemic. Sibile?

SIBILE MARCELLUS: This actually surprised me. I didn't expect that women would be spending more-- getting more expensive handbags, while most of us are dealing with the pandemic, and many are social distancing and observing all the guidelines that we have to fight the spread. But that's exactly what happened.

So Tapestry, which owns Kate Spade and Coach brands, actually said that during the quarter, they saw revenue grow internationally when it comes to handbag sales. So per handbag, the revenue grew by more than 28% globally, and in North America, by more than 20%. Now, when you think back, it actually makes some sense. Because the company took away promotions to focus on consumers that could actually pay the handbags that were more expensive.

And, also, another reason why we're seeing this is because many consumers needed a bigger handbag during the pandemic. You got to put the wipes, the hand sanitizer, the masks, all that extra gear to protect yourself from the coronavirus on top of your makeup kit and all the other stuff that's already in your handbag. So we're seeing women willing to spend more to buy a more expensive, bigger-- most importantly, bigger-- handbag as we go through this pandemic.

KRISTIN MYERS: All right. Thanks so much, Sibile.