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Closure of 70 stores by Coach



Coach Inc., the leather retailer, is in the process of developing plans for a multi-year transformation which will focus on a new branding strategy across the world.
It intends supporting these new plans by boosting existing efficiencies, updating the fleet of its global base, re-adjusting stock levels and closing about 70 of its retail stores across North America.

This will result in Coach incurring pre-tax costs of about $250m to $300m. The charges will be linked to stock, organizational efficiency costs and fleet costs mostly in North America, which may include accelerated depreciation, lease terminations and impairment.

Although the timing of the closures has already been determined, it may last for a period during the 2015 fiscal year. The company reported a decline in its total third quarter sales to the end of March. This was attributed to a weakness in its North American women’s accessories and bag business which has been offset by strong growth in menswear, footwear and an unprecedented growth in sales in Europe and the Asian markets.

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