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Coach (COH) slides 1.5% premarket after a downgrade to Hold and lowering of price target to $59...

Coach (COH) slides 1.5% premarket after a downgrade to Hold and lowering of price target to $59 (from $61) at Baird. "Our annual handbag survey suggests continued market share pressure."
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  • Stan Ackman
    , contributor
    Comments (1146) | Send Message
     
    Not a surprise at all. Coach even put its Legacy line in the factory stores. There is little interest of buying Coach full price items anymore. The impact not only hurt the margin of the business but also impair the brand value.
    19 Apr 2013, 09:55 AM Reply Like
  • ps677
    , contributor
    Comments (165) | Send Message
     
    Guess you're right and I never thought it that way. I saw huge number of women waiting on line at a mall in Auburn Hills MI and things were on sale at coach. However, my roommate's wife was visiting him from Thailand. We'd go to work and drop her at the Great Lakes Mall. She bought 7 or 8 bags, can't remember but she was buying for such people as her family memebers, her boss at a multinational office where she works as a business analyst in Bangkok. So, I felt Coach has more brand value than many of the other products. I live in San Francisco and I went to a mall in Serra Monte, Daly City. I was at Macy's and you know the area next the escalator going up to the first floor, you see those bags and watches and other cosmetic products like scents, perfumes etc. These are kept in the aisles as well as in the show rack and there's are attendants to help you with any questions. Anyway, my observation was - for anyone coming from the first floor towards the ground floor through the escalator, the first thing they can see on those showcases was "Coach" products. I mean coach bags were decided to be put at a place where it was visible to the most of the crowd who'd either window shop around that area or who are eager to buy something in that area. So, I thought why coach was chosen instead of kelvin kline, Micheal Kors etc etc. I kind of felt that Macy's was probably making more by selling Coach or Macy's at that particular location finds that Coach brand to be more valuable to show as a display item. I don't know. Just my thought. I think Coach will eventually turn out to be a 50 billion dollar company in the next 5 to 10 years.

     

    In fact, if you go to a mall and just sit there for 2 hours and start counting the number of women wearing coach bags, you'll notice what I'm trying to say. Coach to women is a huge deal. Especially for people making 40K a year to $100k a year. I think the most concentrated ones are in the middle. They love coach like guys love Marlboro cigeratte instead of other cigerattes. That's my take. By the way, I do believe that women have addition to make up and these kind of items. Its just socially accepted. Otherwise, just think- nail polish is a "good thing to have" = it is not "need to have" product. But in our society, it's considered something that's really needed most of the time for any women. They're addicted to it just like the smokers. Occasionally, they don't have no nail polish. I don't know why that happens.
    21 Apr 2013, 01:05 PM Reply Like
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