Things aren’t looking so bad for Coach Inc., the largest U.S. luxury-handbag maker, which has been desperately trying to make a comeback since its rapid expansion and subsequent crash and burn. The New York-based brand, now under the creative direction of Stuart Vevers (who came from LVMH-owned brand Loewe), posted first-quarter profit that topped analysts’ estimates as new styles and fewer discounts boosted results. According to Bloomberg, “Chief Executive Officer Victor Luis is working to win back customers who have increasingly shifted to competing designers like Kate Spade & Co. by adding new products, updating stores and reducing discounts. In an effort to catch more shoppers’ attention, Coach also has boosted marketing to highlight its 75th anniversary this year.”
Net income fell 19 percent to $96.4 million. Sales dropped 0.8 percent to $1.03 billion in the quarter, missing analysts’ $1.04 billion projection. The shares rose 0.6 percent to $30.32 on Monday in New York. The stock has slipped 19 percent this year, dragged down by concerns about the company’s turnaround plan and the broader market for handbags.