I don't see this as a problem because based on what I've read in the financial news lately, Coach is planning to market more handbags at a higher price point. I would think they would prefer that a person featured in their ad campaign be seen carrying a higher priced luxury brand rather than a product from one of their current competitors (Kate Spade, Michael Kors, etc.).
If I worked for Coach, I would welcome one of my spokespeople being seen carrying a brand that I want to emulate......and I'm not saying "compete with" because Coach would have to make HUGE changes in lots of areas to be in the same category as LV in my opinion.