Facebook Vice President David Marcus is the face of the company's Libra digital currency, but the original driving force was a 26-year-old female corporate-development...Technologyread more
Amazon's new policy for account suspensions doesn't go far enough to protect sellers from potentially unfair and wrongful suspensions, merchants say.Technologyread more
There is no end in sight to the Boeing 737 Max grounding after two fatal crashes, prompting airlines to rethink their growth plans.Airlinesread more
After a year of flooding, Midwest farmers face a stifling heat wave that's spreading across the U.S.Weather & Natural Disastersread more
On Saturday, Disney's Marvel Studios announced its upcoming slate of superhero films during a panel at San Diego Comic-Con.Entertainmentread more
Moving lots of data to a public cloud over the internet can take months or years. CNBC got an inside look at how AWS transfers data to the cloud for its clients.Technologyread more
A quarter of the S&P 500 companies report earnings next week, and that could buffet the market as investors await the July Fed meeting.Market Insiderread more
Iran's Revolutionary Guard claims a British tanker it still holds, Stena Impero, failed to follow international maritime rules.World Newsread more
"It troubles me that the most important political office in the world is becoming the face of racism and exclusion," Kaeser said in a Twitter post.Politicsread more
Silver's rally could be losing its shine after the precious metal reached its year-to-date high, futures experts warn.Futures Nowread more
Some 40% of Americans would struggle to come up with even $400 to pay for an emergency expense. Just how are so many Americans so short on cash? Blame debt.Personal Financeread more
It's about to get a lot harder to snag a discounted handbag at your local department store.
Coach on Tuesday became the latest accessories label to say that it's dialing back its presence in these highly promotional shops. The company this fiscal year plans to exit about 25 percent of the big-box locations where it sells its product, or roughly 250 stores.
The move comes as Coach is working to rebuild its pricing power with shoppers by incorporating more luxurious offerings in its assortment, including its recently launched 1941 collection. That brand has helped it grab shelf space in higher-end department stores including Nordstrom and Saks.
"We do want that channel to treat the brand rather consistently with the way we're doing it with our own retail [stores]," said Andre Cohen, Coach's president of North America and global marketing.
Department stores already accounted for a small chunk of Coach's sales, at roughly 5 percent, according to Wells Fargo. The brand's decision to reduce the level of markdowns these stores are allowed to place on its products makes for a natural exit point, Cohen explained. Coach will also exit low-volume stores that are below a certain sales threshold, he said.
During the fourth quarter, sales in these locations plunged at a mid-teens rate compared with the prior year. That's as its overall North American sales rose 9 percent. Both figures benefited from an extra week.
"This is very much a surgical move that is meant to drive the long-term sustainable health of our brand," CEO Victor Luis added, clarifying that wholesale will remain an important channel for introducing shoppers to the brand.
Coach is just the latest handbag label to dial back its exposure to department stores. Michael Kors, which generates an estimated 40 percent of its revenue in these shops, is likewise trimming the amount of product it's selling there. Over time, that should help the brand boost its margins, and make the overall handbag category less promotional.
Because it's a smaller brand, Kate Spade is still building out its wholesale network, including the addition of select mid-tier department stores. But CEO Craig Leavitt told analysts it's doing so "carefully" and on a market-by-market basis. As such, it's introducing the label at full price. During the first quarter, Kate Spade said traffic in department stores was soft. Still, it grew the average transaction size there through higher prices.
Yet Coach was able to sidestep one of Kate's biggest misses during the latest quarter — a pullback in the outlet space. The company said trends at these discount stores accelerated during the fiscal fourth quarter, with comparable sales coming in essentially flat.
Coach expects same-store sales at these locations to remain roughly flat moving forward, and hopes to pull back on promotions as traffic improves. Because outlet stores tend to be in tourist locations, they've been particularly hard hit by a stronger U.S. dollar and fewer inbound international travelers.
Getting the outlet channel right is critical to Coach's long-term success, as it accounts for roughly 40 percent of its sales, according to Citi. Moving forward, the label plans to offer more "disruptive" products exclusively for these stores, including a collaboration with Pac-Man this fall. The company also plans to grow its men's business in these stores.
Coach is likewise moving forward with renovations on its standalone stores, where same-store sales continue to outpace the rest of the fleet.
During the fiscal fourth quarter, Coach grew its North American comparable sales by 2 percent. That marked the first quarterly increase for that metric in more than three years. The company expects the brand to generate a low-single-digit lift in that metric here in the current fiscal year, as its turnaround takes hold.
It's also calling for double-digit growth in both net income and earnings per diluted share for the year. Still, its guidance came in below Wall Street's estimates, which pressured the stock on Tuesday. Also weighing on the company's shares were that its earnings beat came on the back of a lower-than-expected tax rate. The company earned 45 cents a share, compared with a Thomson Reuters consensus estimate of 41 cents a share.
Despite Tuesday's pullback, the company's shares are up nearly 25 percent so far this year.
"While the sales uplifts may seem somewhat anemic, it is important to note that they are being delivered against the backdrop of a falling number of doors through which Coach sells," said Neil Saunders, CEO of Conlumino research firm. "While disruptive, this corrective action is clearly delivering."