Coach Thinks Outside The Bag

Three years ago, Coach watched its sales plummet as Americans lost interest in its iconic handbags. Today, under CEO Victor Luis, it’s in the midst of a remarkable recovery. Here’s how Coach is climbing out of purse purgatory. It’s not every day that you hear a $3,500 leather jacket described as a bargain. But that’s the argument Coach CEO Victor Luis is making as he shows off a piece from Coach’s new collaboration with hip luxury brand Rodarte. He runs his fingers over the hundreds of small brass rivets fashioned into a floral pattern, marveling at the craftsmanship. “These are hand-painted, cut out by hand, and stitched in one at a time,” Luis says. “In Europe they’d call this haute couture. The reality is that at $3,500, it’s a steal.” It still sounds steep, even for a high-end retailer like Coach after all, the average domestic sales price for one of the company’s famous handbags is only about $325. Then again, this jacket is a statement—a symbol of the strides Coach is making in reestablishing the brand’s upscale aura. See more at Fortune.