Retailers, consumers and prices
Check Out Line: Coach profits from Poppy
Check out the boost Coach is getting from its new Poppy line.
The leather goods retailer reported higher than expected quarterly profit and sales on Tuesday.
Coach said its new Poppy line, which is aimed at younger women with its bright colors and lower prices, helped increase store traffic from the previous quarter.
The average price of a Poppy bag is $260, about 20 percent less than the usual Coach purse. The line’s introduction is part of a plan by Coach to reduce overall prices by 10 to 15 percent and appeal to more cost-conscious shoppers.
Coach Chief Executive Lew Frankfort told Reuters in an interview that he expects earnings per share to show gradual improvement for the balance of the fiscal year when compared with the prior year.
“Consumers are starting to feel a bit more confident that the economy is stabilizing, that the outlook is no longer dire,” he said, adding that he expected a stronger holiday shopping season for the overall industry.
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