2017 Discount Coach Outlet Online at Wholesale Price,60% Off
Coach Outlet Online upgraded after it cuts down on discounts, sells more full-priced handbags.coach says nearly 50% of its handbag sales are at $400 or higher price point.Coach Inc. is doing what a lot of companies across the retail space wish they could: getting customers to spend more money.“As Coach has undergone its ambitious brand turnaround over the past few years, we have been impressed with the commitment to innovation and quality on the full-price side of the business, where promotions have also remained very disciplined,” wrote Evercore in a note published Wednesday. Analysts there upgraded Coach COH, -0.59% to buy from hold and raised its price target to $50 from $45. According to Evercore, Coach is producing a number of positive results, including “significantly better quality product,” a strong response from customers, and positive reception from fashion press and high-end retailers.Coach reported adjusted earnings per share of 75 cents, beating the 74-cent FactSet estimate. Sales of $1.32 billion were up from $1.27 billion last year and in line with the FactSet consensus. Coach Outlet brand North America had a same-store sales increase of 3%, beating the 2.2% growth FactSet estimated.In addition to the full-price business, Evercore also highlighted Coach’s outlet business, which had been slumping.“Outlets are still a large and critical business for Coach, and the growing momentum in the channel gives us confidence that Coach Outlet Store Online can sustain its positive comp even if the category remains flat or slow growth,” analysts wrote.Evercore analysts had been concerned that a higher price point would turn away many of Coach’s outlet customers. However, a “focus on runway shows and fashion press certainly helped the brand break into new high-end wholesale accounts,” opening doors to high-end retailers like Nordstrom Inc. JWN, +0.90% and Opening Ceremony, and “laid the foundation for the success of the luxury 1941 collection (which now represents a third of the full-price business).”Cowen & Co. not only looked positively on the quarter and the shifts in Coach’s strategy, but also in the company’s decision to bring on actress and singer Selena Gomez as a spokesperson, which “is both helpful and symbolic as we believe Coach is making strong efforts to innovate marketing spend towards social media, which is likely more targeted, effective and relevant versus aspects of print,” analysts said in a Tuesday note.“Strategic efforts which should help drive both comps and awareness include the move to year-round gifting, intensification of 1941 product at even higher price points ($695 Rogue Tote), and upgrading product quality/features/value to consumers at the outlet channel,” Cowen wrote. Cowen has written about the challenges facing the overall handbag category, such as the struggles in the department channel. Still, analysts say they’re “optimistic” that the company is following the right product, marketing and distribution path.Cowen rates Coach Factory Outlet shares outperform with a $40 price target.We increasingly appreciate Coach’s discipline in shifting towards higher quality sales,” said UBS in a Tuesday note. Analysts highlight Coach’s decision to close 75 underperforming U.S. stores, the remodeling of 700 stores, leaving 250 wholesale retailers, and lowering the number of promotional days.UBS believes Coach “is strongly positioned for share gains (especially as Michael Kors pulls back on department store promos in February.”Coach, Michael Kors reportedly eye Kate Spade ahead of auction.Luxury retailers Coach Factory Outlet Online, Michael Kors and other unnamed overseas companies are mulling bids on handbag and accessories retailer Kate Spade & Co., sources told Bloomberg.Deliberations are ongoing and no final decisions have been made, the sources said. Kate Spade has plans for a formal auction this month. Inquiries from Retail Dive to Coach and Michael Kors were not immediately returned. A spokesperson from Kate Spade told Retail Dive that as a policy, the company doesn't comment on industry rumors or speculation.Hedge Fund Caerus Investors in November sent a letter to Kate Spade’s board urging a sale, and, separately, activist investor Jana Partners that month acquired 1.07 million shares of Kate Spade, according to a filing with the Securities and Exchange Commission. Kate Spade took a swift downturn earlier this year when the company went from reporting double-digit same-store sales increases to lowering its full year forecast. Executives in August said Kate Spade would endeavor to improve outlet sales by leveraging flash sales to move inventory online, in a sign that the embattled model has its place in a larger retail context. CEO Craig Leavitt told analysts on a conference call at the time that the company would focus on the full-price customer, a strategy he says is working.