Marilyn Monroe famously said, "Give a girl the right shoes and she can conquer the world."
Coach could sure use better shoes to impress Wall Street. The company is going out of fashion quickly with investors.
Shares of Coach (COH) tanked nearly 10% Tuesday after the purse, shoe and accessory company reported worse than expected sales for its most recent quarter, especially in North America.
But Coach's woes aren't new. The stock is down more than 20% over the past 12 months.
These fashion firms compete heavily for middle and upper middle class buyers. They occupy the space just below the premier fashion houses like Prada and Chanel.
Coach handbags sell for several hundred dollars compared to the multi-thousand dollar price tags of the couture brands.
As spending began to pick up again after the recession, Coach soared in 2011 and 2012, but it has since struggled. People aren't buying the brand, and it has even had to close stores.
On a conference call with analysts, Coach CEO Victor Lewis stressed the multi-year turnaround that's underway.
"As our journey progresses, we have confidence our in vision of becoming a global lifestyle brand," Lewis said.
The company is banking on designer Stuart Vevers to revive the 70-year-old brand. He's a Brit with a track record of stirring things up at other brands, including Mulberry.
Vevers' designs are supposed to hit stores later this year. In February, Coach held its first ever New York Fashion Week presentation to showcase over a dozen "ready-to-wear" outfits by Vevers.
The clothes received good reviews, but what sells on the runway and to the fashion world elite doesn't always translate to stores. Moving into clothing would also be a big departure for a company that's carved out a niche in accessories.
At the moment, investors seem skeptical -- much like consumers.
"We think investors should and will wait for greater clarity on the company's long-term strategy, brand vision, and financial outlook to be provided at the upcoming June 4 investor day, and also to see how the new product lines developed under Vevers' direction perform initially at retail this fall," wrote Omar Saad, a partner at stock research firm ISI Group, in a note to clients.
By Mark Thompson, CNNMoney International Editor
Manchester United have sacked their coach after a disastrous season, which means they'll miss out on Europe's lucrative Champions League next season.
David Moyes was appointed less than a year ago, when the club's most successful manager -- Alex Ferguson -- retired after 26 years.
Under Ferguson, the team had won the richest national soccer league for 13 of the last 21 years, and used the steady MOREmarkthompson2013 - Apr 22, 2014 12:40 PM ET
Coach is back in the game! Shares of the luxury handbag maker jumped 10% Tuesday after the company blew past earnings and revenue expectations thanks to solid sales growth around the world.
Overall revenue climbed 7% during the fiscal third quarter to $1.19 billion, with sales rising 7% in North America and 6% in international markets. Sales in China were among the strongest, climbing a whopping 40%.
"We're pleased with...the progress we're MOREHibah Yousuf - Apr 23, 2013 12:01 PM ET
"As you know in fashion, one day you're in. And the next day, you're out." That's one of Heidi Klum's catchphrases on "Project Runway." You can say the same about stocks. And for now, Ralph Lauren is decidedly in.
Shares of Ralph Lauren (RL) galloped (see what I did there) to a more than 7% gain on Wednesday after the company reported earnings that topped forecasts and issued a solid sales MOREPaul R. La Monica - Feb 6, 2013 12:08 PM ET
Retailers who were hoping for some holiday cheer have found coal in their stockings this year.
According to MasterCard's (MA) SpendingPulse report, retail sales leading up to Christmas rose a paltry 0.7% from last year, which wasn't exactly a stellar year for retailers either. And it was far below the 3% to 4% analysts had expected.
It's been a couple of tough months for retailers, no thanks to Superstorm Sandy. Sales fell MORECatherine Tymkiw - Dec 26, 2012 12:26 PM ET
Fossil's stock took a beating Tuesday, making it the second-worst performer on the S&P 500 (SPX) and Nasdaq (COMP), after the company reported weak revenue and cut back its sales outlook for the current quarter.
Fossil (FOSL) reported third-quarter sales of $684.2 million, falling short of the $713.1 million analysts had expected. Earnings fared better. Fossil beat earnings-per-share forecasts by 9 cents. But Europe, once again, reared its ugly head MORECatherine Tymkiw - Nov 6, 2012 12:30 PM ET
The luxury business is booming. Or at least it is for Michael Kors (KORS), the lifestyle brand founded by the Project Runway judge and fashion mogul of the same name.
In its second quarterly report as a public company, Michael Kors (the company) said earnings nearly tripled, easily surpassing forecasts. Sales surged 71% and the Hong Kong-based company also raised its outlook. Investors cheered the results. Shares of Michael Kors surged MOREBen Rooney - Aug 14, 2012 11:24 AM ET
Fossil shares soared more than 30% Tuesday, leading gains on the S&P 500 (SPX) and Nasdaq (COMP), after the company trounced earnings expectations and impressed investors with its profit forecast for the year.
Fossil (FOSL) reported a second-quarter profit of $57.3 million, or 92 cents per share, up almost 12% from a year ago. And revenue jumped 13% during the quarter.
The biggest sales increase came from Asia, where sales soared more MOREHibah Yousuf - Aug 7, 2012 1:46 PM ET
Put me in Coach (COH)? Not today. Shares of the luxury handbag maker plunged 15% Tuesday morning after the company reported that sales missed forecasts. Of particular concern is the fact that Coach's CEO pointed to sluggishness in North America. Coach indicated that its rivals are more aggressively discounting merchandise and that Coach is likely to step up with price cuts too.
Is that bad news for other luxury retailers? Perhaps. MOREPaul R. La Monica - Jul 31, 2012 9:50 AM ET
What's Holly Golightly to do? Breakfast at Tiffany's is a decidedly ugly affair Thursday morning. Shares plunged more than 7% in heavy pre-market trading after the jeweler reported earnings that missed estimates and also issued guidance for the fiscal year that was below forecasts.
Is the bad news from Tiffany (TIF) a sign that even the most affluent of consumers around the world are starting to feel the pinch from what MOREPaul R. La Monica - May 24, 2012 8:01 AM ET
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