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Lisa Botter Apr 19, 2017 6:47 AM EDT Leather goods have emerged as the surprise "must-have" item of the season, according to recent earnings and tradingupdates, with sales boosting the top and bottom lines ofmany luxury houses. Burberry ( BURBY ) Wednesday said that it will put a bigger focus on leather goods and ladies' bags, after the category experienced growth in the mid-teen percentage points in the second half, compared with group growth of 3%. The British luxury house isn't the only company that has experienced this growth, with Hermes International ( HESAY ) and LVMH ( LVMUY ) crediting their leather divisions for strong quarters in 2017. Burberry saw exceptional sales in ladies' bags, with sales up 20% in the second half, CFO Julie Brown said during an analyst conference call Wednesday. Accessories, especially handbags, are becoming an area of focus for Burberry, she added, saying they also the fastest growing part of the market. The luxury house said it plans to create a family of bags, including the Banner bag, ruck sacks and DK88, Brown said. However, the company's focus on its outperforming division did not quell investor concerns. Burberry shares were down 5.8% at 11:24 BST in London, changing hands at 1,602 pence, hitting a three-month low. Coach ( COH ) , a one-time suitor of Burberry, could be a company that could benefit from this trend in leather bags. Coach shares closed at $39.02, having gained 11.8% over the past three months.
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