Affordable luxury leather goods brand Coach is eliminating more than 150 jobs amid reports of low double-digit loses in same-store revenue expected for the year ending June 2015. The company confirmed the downsizing in a statement to The Business of Fashion.
“During our analyst and investor conference in June we unveiled a comprehensive long-term strategic plan to reinvigorate our business. To that end, we’ve announced certain restructuring actions to align our resources for maximum impact while effectively managing our expense ratio. These include a reduction in corporate staffing levels globally, with the elimination of over 150 jobs.”
The company added, “This plan will drive efficiencies across our business by streamlining our organization and leveraging our global capabilities, resulting in savings that will, in part, fund key initiatives related to our transformation.”
In June 2013, Coach took its first steps to refresh the brand’s waning luxury image by bringing former Mulberry creative director, Stuart Vevers, on as the executive creative director. Vevers immediately brought a touch of glamour to the brand by nabbing Steven Meisel to photograph Coach’s A/W 2015 campaign, and by hosting the company’s first New York Fashion Week show.
While Coach remains a popular brand in China and North America, it has seen its share of setbacks. Most recently, in June 2014, the company announced that is would close 70 stores in North America and “de-emphasize” discounting in an effort to compete to fast-growing competitors like Michael Kors and Tory Burch. The closures will bring the number of Coach stores down to 250 and outlet stores to 200.