Sara Lee’s 1985 acquisition of Coach left the handbag manufacturer’s strategy and approach to operations more or less intact. The company continued to build a strong reputation for long-lasting classic handbags. However, by the mid-1990s, the company’s performance began to decline as consumers developed a stronger preference for stylish French and Italian designer brands such as Gucci, Prada, Louis Vuitton, Dolce & Gabbana, and Ferragamo. By 1995, annual sales growth in Coach’s best-performing stores fell from 40 percent to 5 percent as the company’s traditional leather bags fell out of favor with consumers