Retailers, consumers and prices
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.
McDonald’s posted a higher-than-expected quarterly profit on Tuesday, boosted by strong overseas sales. Coach also reported a higher-than-expected profit, helped by higher sales at stores in North America and Japan.
But the impact of a weak U.S. consumer and a weak U.S. economy was clearly on display as the earnings report began to roll in this week.