Luxury handbag maker Coach (NYSE: COH) is experiencing a slump in sales, with net income down 1.6 percent in the fiscal first-quarter. The company reported less-than-stellar earnings of $217.9 million or 77 cents per share, down from from $221.4 million, or 77 cents per share, a year ago. On October 22, news of declining sales caused Coach shares to slip more than 7.5 percent to $50.15 a share.
Sales in North America have struggled as consumers become more price-savvy and shop trendy competitors such as Michael Kors and Kate Spade.
"One can say we were slow to respond to the evolving competitive experience here in North America. But that is no longer the case," president and chief commercial officer Victor Luis, told Women's Wear Daily.
Coach plans to work hard this holiday season in hopes of turning around sales. "Beginning now and throughout the holiday season, consumers will see a fuller expression of the Coach brand, with the arrival of a limited edition capsule collection across all product categories," said Luis.
For 2014, Coach is hoping to boost revenue by launching new store designs and capsule ready-to-wear and accessories collections. The company is also planning to revamp its marketing and advertising campaign strategies.
For more see:
-This Women's Wear Daily article
-This Chain Store Age article
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