US handbag battle intensifies as Coach updates
Monday 28 April 2014
The battle of the handbags continues this week when US leather brand Coach reveals its third quarter results tomorrow.
Investors are braced for a weak update as the competition has hotted up with rival American brands Michael Kors, Tory Burch and Kate Spade all taking market share globally.
Coach is embarking on a turnaround strategy under new chief executive Victor Luis and executive creative director Stuart Vevers.
The brand has been suffering from weaker sales this year and in January reported its worst same-store sales in 13 years and earnings were below expectations.
Analysts expect third quarter earnings of around $0.62 a share tomorrow - below the $0.84 a share for the same period in 2013. British designer Mr Vevers recent collection was received well by the fashion pack.
But analysts at Morgan Stanley said Michael Kors remains the top searched-for handbag brand in the US currently while the number of searches for Coach continued to drop.
Although Coach is far larger than most of its rivals, with sales of around $5bn a year, it is just one of a group of mid-level luxury brands that sell bags for between £300-£500.
UK-listed Mulberry has issued four profit warnings in two years as competition has toughened and its recent pricing strategy was deemed to have alienated existing shoppers. It is on the hunt for a new chief executive and creative director and earlier this month revealed a plan to sell more products at the £500 level to win back customers.
- 1 Raif Badawi, the Saudi Arabian blogger sentenced to 1,000 lashes, may now face death penalty
- 2 PornHub turns masturbation into energy in bid to save the planet
- 3 Dakota Johnson's 'It's only Isis' Saturday Night Live sketch sparks controversy
- 4 Robert Mugabe eats a zoo for 'obscene' 91st birthday party
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
End of the licence fee: BBC to back radical overhaul of how Corporation is funded
Raif Badawi, the Saudi Arabian blogger sentenced to 1,000 lashes, may now face death penalty
Someone has actually got a tattoo of that dress
PornHub turns masturbation into energy in bid to save the planet
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
iJobs Money & Business
£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...
£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...