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Coach Profits Grow, Brand Plans To Reduce Presence In Department Stores

Aug 09, 2016 02:59 PM EDT
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Coach
(Photo : Getty Images/Randy Brooke)

Coach has been working hard throughout the past two years to rebrand itself as a luxury label, and it looks like the extra effort is finally starting to pay off.

On Tuesday, the brand released its fourth fiscal quarter results, which revealed that, for the first time in three years, sales at existing North American stores rose two percent.  

Coach has already expanded into footwear and apparel, redesigned its stores and reduced promotions in an effort to attract a wider customer base and rebrand itself as a luxury label, but now the brand is putting an emphasis on its new retail strategy. Going forward, Coach plans to sell its higher-priced 1941 bag line in all its stores, switch from 12 deliveries per year to eight to better align with the fashion calendar and restructure its wholesale business, Fashionista reported.

On the wholesale side, Coach plans to reduce its department store door count by 25 percent and instead focus on increasing its presence in modern luxury stores.

"Irrespective of what we hear about the demise of the department store, it's true that consumers do go to specialty stores and department stores to be educated on brands and so it's very important for us to continue to partner — yes, in a selective way — with those players," Coach CEO Victor Luis said at the Financial Times Luxury Summit earlier this year.

Coach also has plans for the future of Stuart Weitzman, the accessories brand it acquired in early 2015. On Tuesday, it was announced that Stuart Weitzman will step down as creative director and executive chairman of his namesake brand.

According to a press release, Weitzman will be replaced by Giovanni Morelli, who most recently acted as the leather goods design director at Loewe. Morelli also has experience designing accessories for major brands including Prada, Marc Jacobs, Chloé and Burberry.

"In Giovanni, we have found a creative director who will ensure that the unique DNA of the brand will be preserved while infusing his creative vision for a modern age," Weitzman said in a statement.

"Giovanni is respected for his attention to detail, respect of quality and craftsmanship and for his modern sensibility that is always pushing new design boundaries," he added. 

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