Business Week article on Coach

coachfreak

Looking for LVOE
From the article: For the second quarter ended Dec. 29, which reflected the holiday shopping season, same-store sales at the factory stores rose 17.7%, while sales at the company's retail shops slipped 1.1%. (Overall for the quarter, net income rose 18%, to $252 million, and sales increased 21%, to $978 million.) The company says it's on track to hit $3.15 billion in sales this year, a 20% jump.

Could this be why we saw so many PCEs? I bet that 1.1% would have been worse without the extensions of the PCEs and additional ones sent to the outlet customers.
 

ValleyO

Member
O.G.
Mar 18, 2006
11,341
8
CA
Of course Coach's sales at full-price stores fell- they're being cannabalized by all the outlets they're opening! And I honestly don't envision people "trading down" to Coach from European designers, but rather them just buying fewer things.
 

TygerKitty

~*~ addicted ~*~
O.G.
Feb 26, 2008
16,850
4
Colorado
Wow, very interesting article, thank you! I laughed at this one part (in bold)... "Nevertheless the company is expanding its selection of smaller and thereby more affordable bags, largely in the $200 range. They don't cut prices, but they've spent time ramping up their selections at the entry level—around $150," says Lori Wachs, vice-president of growth investing at Delaware Investments in Philadelphia, which owned Coach shares at the end of last year." It made me feel not so bad that I got "hooked" into the product with a smaller item and continually spend more and more! Hahah the brand is DESIGNED to make you do that hehehe I'm just following along like a happy customer should ;) at least that's what I'll tell myself!
 

pursegal

Member
Apr 24, 2006
4,735
0
50
Chicago, IL
Of course Coach's sales at full-price stores fell- they're being cannabalized by all the outlets they're opening! And I honestly don't envision people "trading down" to Coach from European designers, but rather them just buying fewer things.
I agree, i think and have seen a few doing it, but i dont think it will be enough as they mention.

i also think Coach needs to cool it w/ their prices. I understand some of their newest bags, are very nice, and many are leather (meaning may cost more to produce), but i really think they need to put the cap on it. all along, for Coach it has been their price point and how they stand behind their product and customer service. I know I am now venturing into other brands. Such as Linea Pelle. I figure, hey I bought an $800 bag from coach, let my try this "yummy leather" i keep hearing about from the Pelle line @ $500 or a Marc by Marc Jacobs squishy leather for $450. I believe this is partly due to TPF, and the fact if I pay so much for a Coach, why not try another brand. Now, whether the warranties are apples to apples, I will have to see. But the new price points with Coach did open me up to other brands. this is all jmo.... :yes:

Oh and I also have a list of Tano yummy leather bags wish list, all of which are under $300, and I can find on sale quite often. Plus the line is extremely fun, and i am finding the leathers wear beautifully.