Coach sales slide 10 percent

Handbag maker Coach Inc is far from complete in its turnaround efforts. Sales have fallen 10 percent in the brand's first fiscal quarter of 2015.

Coach had reported $1 billion in first quarter revenue, down 9.6% from the same period a year ago. The largest handbag maker of the US had recently embarked on a transformation journey with a new line and its showing at New York Fashion that it believed would boost sales but so far expectations have fallen short.

However CEO Victor Luis pointed out that the results were in line with the company’s expectations, “Importantly, we made progress on the transformation plan outlined this summer to address brand challenges and bring greater fashion relevance to Coach across the three pillars of product, stores and marketing,” said Luis. “While we recognize that our many initiatives will take time to be evidenced in our financial results, our performance to date has been on plan, and we are confident we have the creative direction, team and resources to execute our brand transformation.”

The company further believes that though it struggles at home it is growing internationally. In 2013 it hired Stuart Vevers, to bring about strategic change in the company. Coach Inc is trying to become a lifestyle company by adding more fashionable accessories and apparel while also layering in higher-priced goods. The company plans to open new locations or remodel the main stores in its 12 biggest markets and has also cut 150 jobs.