Coach looks to leather to revive fortunes

United States
Published:  25 June, 2014

Coach Inc warned of lower sales next year and said it would close about 70 stores in North America as it struggles against fast-growing rivals in its biggest market.

The decline in same-store sales, or sales at stores open at least a year, could be deeper due to lower online sales, the company said in a presentation to investors last week.

Known for its Poppy handbags, the company has struggled to keep up with rivals Kate Spade and Michael Kors.

The company said on June 19 it would spend more on marketing and strengthen its presence in key markets with flagship stores.

“Consumers visiting our outlet stores will see less logo, more leather, more lifestyle categories,” Coach’s North America retail head Francine Della Badia said, adding that the company had seen demand for footwear and outerwear.

Coach also said that it would start holding sales twice a year to win back customers.