Craig Johnson, president of Customer Growth Partners, told the New York Post this about the fashion and accessories label: “We started to see some weakness in sales momentum and believe that Tory is not as strong as it has been,” said “It’s lost half a step.” Johnson attributes some of the weakness to Burch’s move into watches [licensed to Fossil].
The layoffs are part of a restructuring that will put more emphasis on Tory Sport, fragrances and watches. In fact, there will be a Tory Sport store opening early next year in New York.
Handbag competition from Kate Spade has been another factor, according to Johnson. “In handbags, Kate is a little stronger than Tory.”
Even so, sources say Tory Burch should hit over $1 billion in sales.