Business

Luxury rivals driving Coach into the ditch

Coach enjoyed years as the world’s fastest-growing leather-goods brand. Now, it’s taking its licks.

The New York-based handbag maker disclosed a fresh wave of executive departures amid weak sales — a signal that Coach is getting picked apart by newer accessories brands like Michael Kors, Kate Spade and Tory Burch.

Coach shares tumbled 7.9 percent to $53.30 as the retailer reported a 1.7-percent drop in sales at its stores open at least a year in North America, where Coach draws nearly two-thirds of its business.

The company wasn’t willing to promise that sales will improve anytime soon.

“Until we actually experience traction within our stores, we’re not going to forecast it,” Chairman and CEO Lew Frankfort said on a conference call yesterday.

As it gets hammered in handbags, Coach is branching out into lower-margin categories including shoes, women’s clothing and men’s accessories.

The company recently raised eyebrows with a designer baseball glove priced at $438, and a matching maple bat for $248, its handle wrapped in leather.

“The shift to a lifestyle brand will take time and the company is facing a rapidly weakening competitive position,” warned Brean Murray analyst Eric Beder.

Frankfort has further addled Wall Street with plans to step down as CEO at the end of this year despite recent hiccups. Victor Luis, who heads Coach’s international business, is slated to replace Frankfort.

Coach yesterday also said it will sell the Reed Krakoff brand to a group led by Krakoff, who is leaving Coach after 16 years as the company’s creative brains.

In addition, Coach said Mike Tucci, president of the North American Group, and Jerry Stritzke, president and chief operating officer, will leave next month.