L Brands Inc (LTD), Fifth & Pacific Companies Inc (FNP): One Handbag Brand That’s Driving Sales

The bad news at Juicy
Juicy was the laggard, as it has been for a while now. But if you have the stomach for a long turnaround, it might not be a bad thing. First of all, Fifth & Pacific Companies Inc (NYSE:FNP) is planning to expand Juicy in two new product lines. First, with a line of activewear that Blum said would be along the lines of Lululemon Athletica inc. (NASDAQ:LULU). That would be a great business model to imitate, as the company has seen double-digit comparable sales growth over the last year. The downside is that everyone is getting in on the yogawear trend right now, and differentiation may be difficult for Juicy.

The second product type in the pipeline is a line of intimates that the company hopes will give shoppers an alternative to L Brands Inc (NYSE:LTD)’s Victoria’s Secret. That brand has seen slower growth recently, with comparable sales up just 2% in March. That may be an indication that consumers are ready for something new.

Unfortunately, they’re going to have to wait for anything from Juicy. The company is planning to rebalance its price points and expand its lineup, but it’s going to be the end of 2013 or even 2014 before it all gets done. By that time, Fifth & Pacific Companies Inc (NYSE:FNP) may have decided to sell off Juicy, and recent rumors have suggested that a sale could be imminent.

Regardless of what you think about Juicy, Kate Spade and Lucky have a lot of potential, and both have good plans ahead of them. Fifth & Pacific Companies Inc (NYSE:FNP) is looking like it’s at the edge of a new turnaround, and investors should be excited about being a part of it.

The article 1 Handbag Brand That’s Driving Sales originally appeared on Fool.com and is written by Andrew Marder.

Fool contributor Andrew Marder owns shares of The Buckle. The Motley Fool recommends lululemon athletica and The Buckle. The Motley Fool owns shares of The Buckle.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.