Victor Luis, Coach’s CEO, has told investors about his brand transformation plans. In practice however, many aspects of his brand transformation plan have not panned out. Coach has succeeded in discouraging its fans from shopping at retail/mainline stores without actually reducing the discounting of the brand.
Here’s a list of ideas I’ve talked about on this blog that could be relevant today.
I have a few speculative out-of-the-money puts on COH. The thesis is simple. Coach’s same store sales dropped 21% in North America (press release). This is an outlier. It is highly unusual for same store sales to drop so fast. It is a sign that the CEO will eventually destroy the company if left unchecked.