Over the years, Coach Inc. has built a handbag empire worth almost $800 million in North America alone. Double-digit comp increases have been hard to sustain for the brand, and although they experienced significant growth in 2012, comp-store sales increased by only 1% for the year. Some Bloomberg analysts have suggested that the move to drive growth through the introduction of a more substantial "lifestyle" strategy is risky, Coach has already experienced early success with their shoe re-launch.
Coach's closest competition in the entry-level luxury lifestyle market seems to be Michael Kors, who’s apparel and watch business is well established. They are also seeing strong growth in shoes and handbags.
Michael Kors is growing at a much faster rate, but still a much smaller company. The two companies differ slightly in their new-store strategy, Michael Kors taking an international luxury market approach, while Coach has really dominated in the outlet sphere. While still strengthening its creative team, Coach will continue to launch apparel into the fall and holiday seasons this year.
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