Just came across an interesting article over at BusinessWeek which talks about the explosive growth of Coach (COH), the handbag retailer. According to the article, sales have increased 25.7% for the company’s second quarter. This increase has made the Chief Executive of Coach, Lew Frankfort, think that perhaps the company should expand even more. 
However, analysts say that if Coach grows too fast, the company could lose its “upscale” image. As more women start to own Coach bags, they’ll start to lose their appeal. I’m reminded of the time when the Motorola Razr phone used to cost $300. Now you can buy one of those phones for under $100 and suddenly everyone and their grandma has one. Not quite an exciting phone anymore. Who wants something that everyone else has?
Pictured here is the Coach Scribble Stitch Satchel Handbag available at Amazon.com.
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» Fashion Companies You May Want to Invest In from TheRunwayScoop
As someone who pays more attention to the stock price of a brand than what celebrity is actually represeting a brand, I find great pleasure in discovering that Coach shares have hit a 52-week low. Coach (COH) is one of the com... [Read More]
Tracked on: December 20, 2007 5:16 PM | Permalink to Trackback