• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
Retail

Coach Is Regaining Its Upscale Luster by Dropping Department Stores

Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
November 1, 2016, 3:21 PM ET
General Images of Economy Ahead Of Nationwide Quarterly Land Price Data Release
Photographer: Kiyoshi Ota/Bloomberg via Getty ImagesPhotograph by Kiyoshi Ota — Bloomberg via Getty Images
Add Fortune on Google for similar content.

Luxury is supposed to be about scarcity.

But in recent years, chasing after sales growth, many so-called accessible luxury brands including Coach (COH) have gone after all the distribution they could find, opening shops at hundreds of department stores as well as adding to their own locations.

The result of that ubiquity in many cases has been a damaged brand and loss of control over how merchandise is presented.

Coach, in turnaround mode, is now subscribing to the less-is-more approach. The fashion brand is in the process of exiting some 250 U.S. department stores, to focus on those retailers’ best locations and on its own fleet of stores. And it’s paying off.

Coach on Tuesday reported a 2% increase in North American comparable sales for its most recent fiscal quarter, the second such period of growth after years of sharp declines. Total sales for the quarter rose 1% to $1.04 billion.

“We are pulling back on distribution because I think the footprint we were in was just bigger than where the brand is,” Coach’s North American president, André Cohen, told Fortune.

In July, the company announced it would remove its products from about 25% of the roughly 1,000 wholesale locations where Coach currently sells its goods in North America. It also said it would reduce the markdowns that Coach allows department stores to take, concerned by the high level of promotions those stores are employing to try to stanch their own sales bleeding. Macy’s (M), Coach’s single biggest department store partner, has reported declining sales for six straight quarters. Nordstrom (JAN) has similarly been struggling.

“The constant discounting in department stores was affecting brand perception,” Cohen said.

Ralph Lauren (RL) and Lacoste are among the many brands to express frustration with the barrage of brand-eroding promotions at department stores.

Coach was seduced by the logo craze of a few years ago that had so much of its merchandise festooned with the word “Coach” or letter “C,” as well as the boom in discount factory stores that sent sales soaring. Coach felt that the factory-store surge helped it compete against fast growing rivals like Michael Kors (KORS) and Kate Spade (KATE) during the handbag boom earlier this decade. But that growth came at a cost: Coach came to be seen as a brand for masses attracted to gaudy handbags, rather than as a maker of quality, elegant leather goods with history going back to 1941.

 

 

The company is in the middle of a five-year turnaround plan drawn up by CEO Victor Luis soon after he took the reins in 2014. That has included shutting 20% of Coach’s stand-alone stores, the better to focus on its best-performing stores in key markets.

That plan has involved other steps such as reducing the number of online sales events in its factory store business, and reinventing itself as a so-called “lifestyle” brand, whose offerings go far beyond its staple shoes and handbags to include a wide array of outerwear and apparel. Coach is in the process of remodeling many of its stores, incorporating a sleeker look that is more upscale. And it has become a fixture at fashion weeks to showcase work by its star designer, Stuart Vevers.

At some stores, Coach has opened “craftsmanship bars” to showcase the workmanship that goes into the 75-year-old brand’s wares.

The result: Coach has been regaining some of its old upscale cred, hurt in recent years by many garish and cheap-looking, logo-festooned items. Now handbags that cost $400 or more generate more than half of that category’s sales, up from 30% a year ago. And favorable perception scores are up to 80% now, from 70% a year earlier.

“We are, at the highest levels, moving from the lowest common denominator in pricing to a more innovative, more emotional positioning that provides consumers something they can’t find elsewhere,” Luis told Fortune.

About the Author
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

ts
Arts & EntertainmentNew York
NYPD confirms ‘an event that we are tracking at Madison Square Garden on Friday night,’ declines to comment on Taylor Swift wedding
By Jake Offenhartz, Kimberlee Kruesi and The Associated PressJuly 2, 2026
9 hours ago
usa
North AmericaWorld Cup
The World Cup is a smash but America still isn’t a soccer country, poll suggests
By Linley Sanders and The Associated PressJuly 2, 2026
9 hours ago
i
AsiaIndia
India and Japan just made “economic security” a shared mission
By Sheikh Saaliq and The Associated PressJuly 2, 2026
10 hours ago
j
EconomyJobs
Economy disappoints with half as many jobs created in June, and May and April gains revised downward
By Christopher Rugaber and The Associated PressJuly 2, 2026
14 hours ago
U.S. Polo Assn. CEO J. Michael Prince
SuccessThe Promotion Playbook
U.S. Polo Assn. CEO was flat-out told he wasn’t right for a promotion—so he ‘outworked’ anyone else who wanted the job for 6 months straight until they changed their mind
By Orianna Rosa RoyleJuly 1, 2026
1 day ago
I know how Gen Z can survive the ‘jobpocalypse’ because I built an AI company — in 2015
CommentaryCareers
I know how Gen Z can survive the ‘jobpocalypse’ because I built an AI company — in 2015
By Jeremy FainJuly 1, 2026
2 days ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
2 days ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
8 days ago
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
Success
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
By Orianna Rosa RoyleJuly 2, 2026
20 hours ago
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
Success
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
By Sasha RogelbergJuly 2, 2026
10 hours ago
Current price of oil as of July 1, 2026
Personal Finance
Current price of oil as of July 1, 2026
By Joseph HostetlerJuly 1, 2026
2 days ago
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
Success
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
By Emma BurleighJuly 2, 2026
12 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.