This story was updated from 8:46 am EST with additional information and analyst commentary.
NEW YORK (TheStreet) -- Analysts at Goldman Sachs (GS) reiterated Coach (COH) as a "sell" this morning, saying, "We believe Coach's high-fashion focused brand turnaround strategy is doing incremental harm by taking the assortment too far out in both its aesthetic and price points, ultimately alienating consumers."
Separately, on Tuesday, the retailer named Gebhard Rainer to President and Chief Operating Officer, a position that's been vacant for the past year. Rainer, who starts his position on September 29, was formerly the CFO at Hyatt Hotels. He will be responsible for finance, information systems, logistics, operations and production at Coach.
"We believe this is a good hire," Stifel analyst David Schick writes in a research note. "Our quick checks suggest Rainer was well liked by the Street, brings International operating experience, has significant IT and procurement experience, and was part of moving Hyatt 'up-market'."
"The old COH team and model is rapidly giving way to the new team and model," he writes. "Sticking with the old plan too long had meaningful negative consequences -- but the BOD and company are making significant changes and bringing in new expertise."
Coach warned in June that it expected revenue to fall by a double-digit percentage for fiscal 2015 and next year it would close 70 underperforming stores. Coach CFO Jane Hamilton Nielsen told investors that fiscal 2015 is "the invest and reset year, largely is a function of our reduced promotions and store closing activity, we expect to see low double-digit revenue decline."
Coach's same-store sales fell 17% in the quarter due to weak store traffic, following a 1.7% decline a year ago, as consumers can't get enough of rival Michael Kors (KORS) handbags and other offerings.