Discount Success Undercutting Coach’s ‘Luxury’ Brand

Coach is in a catch-22. Its discount outlet stores are driving most of its customer traffic and sales, while the company is trying to emphasize its full-price stores and regain its place among luxury brands, offering fewer discounts. "We estimate that four out of five handbags sold by Coach are coming out of the factory stores," said Wells Fargo analyst Paul Lejuez.