Interesting Article on Forbes on Coach Sinking North American Sales

TPF may earn a commission from merchant affiliate
links, including eBay, Amazon, and others

#3
PursesbytheSea said:
Interesting quote from a paragraph in the story. "We continued to be disappointed by our performance in North America, which was impacted by substantially lower traffic in our stores and by our decision to limit access to our e-factory flash sales site,” Luis said.


http://www.forbes.com/sites/maggiem...n-earnings-miss-north-american-sales-decline/
Click to expand...

I always joke with my husband that Coach executives should call me. I can tell them what they are doing wrong! LOL :laugh:
 
#6
treasured said:
Serves them right for shutting out so many TPF members from FOS! I think that is responsible for a drop of several percentage points!LOL
:laugh:
Click to expand...

I think that's exactly what Luis meant when he said "limiting access to our e-factory flash sales site" was a contributing factor. For me personally, being locked out of FOS turned me away from ALL Coach, and I was practically a fixture at the boutique store. Not anymore, though. Way to go, Coach! :tdown: Insult your best customers then expect good business results. Yeah.
 
#7
Hmmm... I can still get into the factory site. I don't receive the emails anymore, however, from either Coach or Factory, even though I keep signing up when they send me "stay in touch" emails.

It bugs me when the financial analysts say Coach is not "fashion forward". Does that mean trendy? I guess trends sell more merchandise than classic styles.

Or part of it could be that the market is more saturated in the US, or they hit a peak with customers building their collections. Sounds like there is room to grow the brand internationally.

I would love to see them make more leather jackets at various price points. We need more choices, and leather is a strength of Coach. I like their shoes, too (on sale of course). I feel like they are at a good price point for the quality, and a nice stepping stone to designer shoes.

Oh well, everything changes.
 
#8
I've been trying to find down time today to post about the earnings call. As an investor (DH took a shirt position, wisely, a few months back) I am not surprised at all that Jim Cramer from The Street has compared Coach to JC Penny. A few of us here on tpf had done that not too long ago , in fact. Am posting tidbits of that article here, for anyone who is interested....ImageUploadedByPurseForum1390415586.217367.jpgImageUploadedByPurseForum1390415601.442249.jpg
 
#9
ImageUploadedByPurseForum1390415636.906203.jpgImageUploadedByPurseForum1390415650.902462.jpg

Interesting passages about FOS access here. As someone ready to take on a major promotion in academe, I remain rather emotive when I read about decision making and FOS and reselling as a factor. Since I've opined on that already, in other places on this forum, I won't add it or repeat it here again.....
 
#10
And for anyone interested in the earnings call transcripts, here they are.....I was really intrigued by the lack of info to investors about how price increases have been implemented on the capsule collection they frequently cited in the call as their great hope for future sales...and how "emotion" is trumping price (logic?) with purchases in certain lines like the capsule collection as seen in page 5 of the transcripts.

Meanwhile , investors who day trade may cause a dead cat bounce in the stock, in the coming days, but for the long term, it's looking like COH is certainly a sell...or, as DH has done, a good stock to take a short position....

As far as the comparison to JC Penny, that gives me food for thought not only with future investment making decisions with Coach, but also with purchases. I've already scaled back quite a bit, with concerns I've noted elsewhere here on tpf ... And now I think I'm making up my mind as to how to go forward from here. Curious to keep reading what others are thinking, too!

Happy hump day, everyone, in the meantime!
 
#12
proffashionista said:
I've been trying to find down time today to post about the earnings call. As an investor (DH took a shirt position, wisely, a few months back) I am not surprised at all that Jim Cramer from The Street has compared Coach to JC Penny. A few of us here on tpf had done that not too long ago , in fact. Am posting tidbits of that article here, for anyone who is interested....View attachment 2473688View attachment 2473689
Click to expand...
I am not surprised in the least, honestly. This new direction they have went in has scared a lot of people away. Including myself and a lot of other long time tPFers.
Juicy Couture has sold out to Kohls (or so I've heard) so if Coach doesn't do something eventually they will be looking to sell out as well. And the articles make a great point about Coachs ambitious price points. I like how now most of their buyers are the $200 or less outlet crowd and they still expect to "sell out" these $7-800 bags. Lol. They might as well be only MFF and never do a front line. And focusing on banning resellers is such a waste of time when they need to be worrying other things. Once someone buys your product they be able to do whatever the heck they want with it. It's just one of those things you can't win.
Just in my opinion, Coach used to be fun and unique even if it was mass produced. Now it's just plain and boring and mass produced. :( I know I have an unpopular view and please don't bite my head off. I used to at one time have 95+ bags, all by Coach.
I have not bought anything new since they changed Madison and I'm still not interested. And I'm not the only one. :(
 
#15
proffashionista said:
I've been trying to find down time today to post about the earnings call. As an investor (DH took a shirt position, wisely, a few months back) I am not surprised at all that Jim Cramer from The Street has compared Coach to JC Penny. A few of us here on tpf had done that not too long ago , in fact. Am posting tidbits of that article here, for anyone who is interested....View attachment 2473688View attachment 2473689
Click to expand...


Darn auto correct. DH took a *short* position a few months back. (Though he does buy a lot of shirts lol)
 
You must log in or register to reply here.
Top