Coach's 'no discount' policy costs
21/01/2009
High-end leathergoods brand Coach has said its second-quarter profits were down by 14% on the same period last year. The company said consumers' desire to find discounts had hit it hard.
Coach's chief executive, Lew Frankfort, said in a statement: “We stood virtually alone among retailers in maintaining our long-standing practice of not discounting in our retail stores in order to protect our brand proposition.”
Profits fell to $216.9 million from $252.3 million a year earlier, on sales figures of $960.3 million, which themselves showed a drop of 1.8%.
Mr Frankfort said he plans to reduce costs by postponing some new-store openings in North America next fiscal year. Bloomberg said this meant Coach would open around 20 new stores in 2010 instead of its usual number of 40.
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