- Sterne Agee's Ike Boruchow and Tom Nikic hosted a conference call with Coach (COH -1.2%) yesterday, with Coach preaching turnaround, but the analysts are not quite buying it yet.
- "The company is currently facing unprecedented competitive pressures in the accessible luxury handbag space," says the Sterne Agee team, noting faster-grower competitors like Kors, Kate Spade, and Tory Burch are threatening market share and margins.
- Initiatives are in place at Coach to reverse things like negative North American comps in five of the last six quarters, but it could take time to turn around such a large business ($3.5B in N.A. sales last year).