Handbag maker Kate Spade  ( KATE) is reportedly exploring a sale and it makes sense for several reasons. First, Kate Spade's profits are being hurt by excess discounting, especially at outlets. The discounts are cheapening the Kate Spade brand in the eyes of consumers. Second, Macy's ( M - Get Report) will be closing about 100 stores in 2017 and that means fewer places to sell Kate Spade handbags. Finally, Kate Spade's brand hasn't traveled well overseas like those of rivals Coach ( COH) and Michael Kors ( KORS) .