US accessories brand Coach will spend the next quarter focusing on an “aggressive remodel” after sales plummeted 15% to $929m (£604m) in the three months to March 28, down from $1.1bn (£713m) during the same period in 2014.
The slump dragged down net income, which fell from $191m (£123m) last year to $100m (£64m).
Chief executive Victor Luis said: “Our brand transformation remains on track across the three key brand pillars, as we continued to open and renovate modern luxury concept stores globally.
“During the fourth quarter, we will be focused on our aggressive remodel and store opening schedule.”
Costs related to rennovating stores and closing 43 underperforming retail and 12 outlet locations in the US totaled $23m (£15).
The company also plans to continue the integration of the Stuart Weitzman footwear brand into the business, which it said it would buy in January, and begin working on plans to celebrate its 75th anniversary later this year.