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Cramer: Coach Is a Tired Product

NEW YORK ( TheStreet) -- Debra Borchardt: Jim, Coach (COH - Get Report) came out with their earnings and the market slammed the stock. I don't understand why this market was so surprised by these earnings. You and I have talked about Coach many times over the past year about how the market has just moved away from them. It's not a viral product any more.

Jim Cramer: It's a tired product. Coach is a tired product. Tiffany (TIF - Get Report) is a tired product. They're both in pretty much the same boat. The market has left them. The market likes other things. I think Kors (KORS - Get Report) ...

Debra Borchardt: Kors has stolen that market.

Jim Cramer: Yes, Kors has and we know that Nordstrom's (JWN - Get Report) their product has taken a lot of share. David Yurman on the side of Tiffany...Yurman is a private company, but they've taking a lot of share from Tiffany. What I think we have to recognize is that brands do get tired. Brands do get old and Coach has become old and it is run by a terrific guy Lew Frankfort, but it may have passed it's time. The inconsistency of the numbers has to do with they're just not selling well. I know that Nicole Urken who works with me, bought a Coach bag and had a coupon an immediately got a coupon for the next Coach bag. I'm not saying that Coach is going out of style. There are a core group of people who buy Coach. What I'm saying is that when you see these levels of numbers and down two percent in that sense, it is not loved.

Debra Borchardt: I was in the airport last week and I just walked through the Coach store at the airport, they didn't have a sign but the sales girl pulled me over and said these are 50 percent off over here and I was thinking "Are you kidding?" and they weren't like a specific seasonal bag. It was a regular bag and I think you're right because on the Coach bull case people are saying, "Oh but they've got this new men's product and it's so great." Not enough men are going to buy Coach Bags to make up for the women that are leaving to buy a Kors bag.
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