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Handbag margins declined due to falling sales at high margin full priced stores ebitda margin for its handbag business declined from an estimated 41% in 2007 to 33% in 2009, attributable to increasing share of handbag sales coming from factory stores rather than higher margin sales at full priced stores. Factory stores offer goods at discounted prices, offering lower sale margins compared to full priced stores. The mix shift in demand was driven by rising value consciousness amongst consumers during the economic downturn.

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Handbag margins declined due to falling sales at high margin full priced stores ebitda margin for its handbag business declined from an estimated 41% in 2007 to 33% in 2009, attributable to increasing share of handbag sales coming from factory stores rather than higher margin sales at full priced stores. Factory stores offer goods at discounted prices, offering lower sale margins compared to full priced stores. The mix shift in demand was driven by rising value consciousness amongst consumers during the economic downturn.

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