Net income at Coach fell a whopping 12% this quarter as the retailer faces intense competition from Michael Kors, Kate Spade, and Tory Burch, the company said in an earnings statement today, according to Bloomberg.
Chief Financial Officer Jane Nielsen said the negative sales trend will continue for the next year.
In an attempt to spur revenue, the company is trying to break into menswear and plans to offer more expensive handbags in the future.
Handbags currently top out around $600, but new lines could be as much as $5,000.
Why is Coach so hurt by the competition?
Analysts have blamed the lack of a visible personality, like Michael Kors or Tory Burch.
“The question is where is the authenticity going to come from?” Jeffry Aronsson, a fashion brand-builder, told Bloomberg earlier this year. “A brand is a reflection of the person who is leading it, that provides the authenticity, the foundation of a business.”
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