Handbag sales may slow as jewelry shines

Louis Vuitton has found that "growth in the U.S. luxury market segment continues to accelerate on an annual basis," Molly Morse, a spokeswoman, said declining to provide figures.

Handbags still are the fastest-growing part of the U.S. fashion industry, ahead of earrings, wallets and other small leather goods, according to NPD Group Inc., a market research firm in Port Washington, N.Y.

A Goldman survey of 1,550 consumers, released in June, found that 32 percent expected to buy fewer handbags this year. About 18 percent said they'd buy more, and 51 percent said they planned to purchase the same number.

The report points out positive prospects for Coach. "The survey strongly supports our positive views on Coach's fundamental outlook," Margaret Mager, a Goldman analyst, wrote.

Cristin Murphy reflects the limits to record demand. Murphy, who lives in Aliso Viejo, Calif., said her spending on bags peaked in 2003, and her handbag wardrobe includes five Coach, two Prada, a Burberry and a Kate Spade.

"I have kind of made my investment in handbags," said Murphy, 35.