As Kate Says {she knows manners}

Now I can hardly imagine anyone wanting to re-gift a Kate Spade item, but there are instances when you receive a gift & ponder.

From Kate Spade Manners: The quiet truth is that people do re-gift. Re-gifting is done with gifts that don't fit, aren't to your liking, or aren't returnable. Don't re-gift as a way of cleaning out your closet or saving money. As with any gift, the selection should be suited to the recipient.
You can read all of what Kate Spade has to say about Manners in her book of the same title.