Coach sales figures still sluggish
By Kristopher Fraser
Aug 5, 2015
New York - Rome wasn't built in a day, and it takes more than a season for a fashion company to turnaround their sluggish sales figures. Coach, which has seen a 12 percent decline in revenue, is still at work to try and elevate their brand, revamp their stores, and bring their sales numbers back up. Coach was once considered a right of passage for many young fashionistas.
With their modest 300 to 900 dollar price tags for a handbags, they were once considered the stepping stone for young fashionistas with an affinity for designer purses who hadn't yet arrived to the point where they could drop four figures on a Chanel, Louis Vuitton, or Gucci. With increased competition from brands like Michael Kors, and people willing to invest more money in higher end designer pieces, Coach has lost some of their ground in the leather goods market. For the financial year ending June 27, Coach posted sales figures of 4.19 billion dollars, down from 4.81 billion dollars, with North American figures at 556 million dollars, down from 691 million dollars.
Coach posts decline in sales figures
The decline in numbers is less discerning than expected for Coach, because they saw it coming. The brand no longer uses frequent sales events to bring in customers in an attempt to position themselves closer to the luxury goods industry. In recent quarters, Coach has cut back on their number of flash sales from three a week to two a month.
Coach's real problem is that they are waiting for customers to stop trying to buy Coach at sale price and buy full price items. While they are waiting for this to happen, they have begun massive renovations to their stores to make them more upscale, with more than 150 Coach stores worldwide receiving makeovers. The brand is hoping that new creative director Stuart Vevers will really be able to turn the company around.
Last February, Vevers presented his first collection at New York Fashion Week, and it was met with mostly positive reviews. Vevers show was so successful that Coach is planning their first women's wear show for NYFW next September. Hopefully the collection is a success, and will translate into better sales figures for them in the coming quarters.