Michael Kors Holding Ltd (KORS) stock is down following a downgrade from Credit Suisse Group AG.

Analyst Christian Buss said the company has suffered a decline in handbag demand that prompted the downgrade. He lowered his rating from the equivalent of a buy to neutral.

Additionally, Buss set the 12-month KORS stock price at 79$. Credit Suisse’s original price target for the stock was $103.

Michael Kors has been hit in a number of areas including rising inventories and decreased demand for its products. The retailer has increased its promotional activity and improved its e-commerce sites as a response.

KORS shares are down 10.2% Tuesday afternoon.

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