The punishing handbag wars have left Coach with serious battle scars in recent years.
Coach (COH) has been bruised by fierce competition from Kate Spade (KATE)and Michael Kors (KORS) and missteps in its pricing strategy that have tarnished the brand.
After years of steady sales growth, Coach suffered a 5% drop in fiscal 2014 revenue amid struggles in North America.
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That's why Coach shares have underperformed the S&P 500 and its peer group each of the past three years, highlighted by a 37% plunge in 2014.
Management has responded by unveiling a slew of strategic changes, including boosting store capital spending, hiring a new designer, reducing promotions and growing the men's brand.
However, Standard & Poor's recently warned "negative sales trends and margin erosion will persist" in fiscal 2015. The timing on a turnaround "remains uncertain."
