The company known for is high end handbags started to experience the effect declining profits. Coach profits began declining due to department stores such as Macy’s closing many of their stores which sell Coach products. Outlet stores also cause a hit to the profits, offering clearance and high discounted items. This inspired the company to branch out. Recently, the Coach company purchased one of their competitors, the company of Kate Spade. The intent was to increase profits by appealing to a younger group of consumers. While this seemed to be an ideal plan, the company is actually experiencing a smaller growth that expected. This was due in part to the dependence of discounted and clearance online sales of the Kate Spade company. While the
