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Bad idea, Frasch warns: "If you don't react to trends, you're going to get your brains beat out at retail." Saks has relegated the brand to the fifth floor, with younger labels like Juicy and Moschino, across from the store's designer medline jeans department, rather than showcasing it on the main floor with the more fashion-forward brands. There have been past seasons, the medline Spades confess, where they lost their focus medline and their product mix hasn't been quite right. Burt Tansky, CEO of Neiman Marcus, refers to their troubles as a "challenging period" but says the line is now looking strong again and that there's no truth to the rumor that Neiman was looking to sell its stake. One way to counter the competition is to expand aggressively on the retail front, and Andy estimates the company will roll out 50 of the mainstream Kate Spade stores in the next five years. Still, that's far short of the LVMH juggernaut, or Coach's plan for world domination through its 280 retail stores around the globe.
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