Tuesday, May 11, 2010

Coach Caters to Men With New NYC Shop

CNBC

The men's concept is the latest way Coach has adapted its strategy due to the recession. It also created the lower-priced "Poppy" collection for price-sensitive consumers, and more aggressively pursued opportunities in China. This diversification has helped the company's shares rise nearly 60 percent compared to one year ago.

But it remains to be seen whether men, whose shopping is often done by women, will respond to the store. Wall Street Strategies analyst Brian Sozzi referred to the men's concept as "just another feather in Coach's cap," saying that for a modest investment, the company will receive great feedback.

"[They've created] a bunch of different potential growth levers over the longterm," he said.
Sozzi said it's too early to gauge what effect the concept might have on sales growth—or on the company's shares—in the long-term. He has maintained a "buy" rating on the stock, raising his price target to $50 from $45.

Link to full article: http://www.cnbc.com/id/36961274