Despite a recent jump in Coach's share price on signs of stabilization, Goldman Sachs issued a research note saying that the retailer's turnaround may be just midway through.
Previous attempts to reinvigorate blue-chip consumer companies, including Nike and Gap, have been long, expensive and painful, the report noted. Analysts also reiterated a "sell" rating on Coach stock.
"The average peak-to-trough share price move relative to the S&P 500 for this group is -63 percent, and the duration two and a half years," it said. "While Coach has already taken some pain, this analysis suggests it may only be half way through the worst of it."
(Read More: Coach Beats Earnings, Hikes Dividend)
Years of underinvestment and too much emphasis on its outlet stores have undermined Coach's brand equity, leaving it open to newer entrants to the space, include Fifth and Pacific's Kate Spade brand, Michael Kors, and Tory Burch.
The company's falling market share in the core handbag market and poor search trends reflect its deteriorating brand equity.
An analysis of Google search trends shows that the company fares relatively poorly in searches by consumers in more trendsetting states, such as New York and California, and more prominently in late adopter states.