Coach says its shift last year to lower price points continues to pay off, and that it will keep up the momentum by adding even more price assortment to its luxury offerings.
"We feel very good
about our positioning," chairman/CEO Lew Frankfort told investors at the Piper Jaffray 30th Annual Consumer Conference in New York. "Consumers have responded very well to shifting assortments, and the
greater opportunity to purchase Coach at a lower price than a year ago."
The company began the shift last year with the introduction of its Poppy line, Michael Tucci, president of the chain's
retail division, explained at the event, which was webcast. That move, he says, took average ticket sales down to about $300, "the sweet spot. Poppy is our introductory price point—we didn't
move like-for-like price points down, but we did introduced lower-priced products through the Poppy line." Poppy bags are priced around $200, while many in its Madison collection are close to $400,
with some as high as $800.