• Bloomberg, Tuesday, August 21, 2007 1:15 PM

Coach Inc.'s shares, like its handbags, are losing their cachet. Some investors believe the outsized gains for Coach stock, which has surged 22 times since first being sold to the public in 2000, are over.

While the maker of Soho and Ergo purses has dominated the market for $200 to $400 handbags for the past decade, Coach is winning fewer customers amid a market slowdown. Competitors including Liz Claiborne Inc. and Polo Ralph Lauren Corp. are spending more to market purses, including Juicy Couture velour hobo bags and alligator satchels.

Coach has widened its price range by selling products from $28 leather charms to dangle on bags to $798 Legacy bags.

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