LUXURY fashion retailer Coach posted a steep drop in sales yesterday as the company attempts to rebrand.
For the three months ended 28 March, sales were $929m (£606) – a 15 per cent drop compared with the same period last year. The decline in sales led to a decline in net income to $100m from $191m last year.
Coach chief executive Victor Luisof said that over next three months the company “will be focused on our aggressive remodel and store opening schedule, welcoming and integrating Stuart Weitzman to the Coach family.”
The company brought in well-known fashion designer Stuart Vevers as creative director to add fresher styles, and said in January it would buy luxury footwear company Stuart Weitzman.
Coach has been losing out to competition such as Michael Kors, Kate Spade and Tory Burch.
Meanwhile, the company is renovating some of its stores, closing weaker ones and has cut down on its popular flash sales in order to reverse falling shop revenues.