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Coach benefits from well received launch of Poppy
Oct '09
Mr. Frankfort continued, “The launch of Poppy in July, along with our new pricing strategy, which gives the consumer more choices at prices she is willing to pay or is able to afford, resulted in an increased sales penetration of handbags. We also benefited from a sequential improvement in traffic fueled by Poppy, which was supported by comprehensive marketing programs at its launch. Importantly, the product introductions that followed over the quarter, were also well received. Earlier this month, we started flowing in our holiday assortment, including a relaunch of the Madison collection and new Poppy styles and fabrics.

“We're also extremely enthusiastic about the response to Coach in China, where we are continuing to experience rapid growth for both Coach and the imported accessory category. We're also pleased to announce the opening of our first Mainland China flagship store, planned for Spring 2010 in Shanghai. The 7,000 square foot store will reflect Coach's latest global flagship design. To support our growth in China, we are also planning to open an Asia distribution center, also in Shanghai, before the end of our fiscal year, allowing us to better manage the logistics in this rapidly growing region for Coach.”

“For over a year we have been addressing the very weak retail climate in the U.S. and abroad. We have adapted our pricing and product strategies to be successful in what will become the 'new normal' by rebalancing our assortments and introducing Poppy, a youthful lifestyle collection, which instantly became one of our major platforms. While we continue to plan conservatively, we believe that we're well positioned for the seasons ahead. We're also squarely focused on the abundant growth opportunities available to us as we begin to emerge from this downturn,” Mr. Frankfort concluded.

Coach is a leading American marketer of fine accessories and gifts for women and men, including handbags, women's and men's small leathergoods, business cases, weekend and travel accessories, footwear, watches, outerwear, scarves, sunwear, fragrance, jewelry and related accessories.

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