The Wall Street Journalreports that Coach's second-quarter earnings climbed 11% thanks to improved sales during the holidays. The discounts on handbags likely helped Coach this holiday season. The company's same-store sales were up 3%.
Coach has been cutting handbag prices and introducing new styles in an effort to improve sales of shoes and accessories as consumers continue to cut spending on luxury goods. Efforts to boost its North American operations showed some success in the prior quarter. Coach also has been working with its suppliers to avoid hurting margins, as stores remain cautious about building up inventories despite signs the economy is stabilizing.
Chairman and Chief Executive Lew Frankfort on Wednesday said Coach was especially pleased with the rebound at its North American stores from the holidays, with same-store sales up 3%
Bloomberg has a less rosy article on Coach. Bloomberg says Coach's North American sales during the second quarter were lower than some analysts' estimates and that Coach's department-store sales fell.
The Wall Street Journal 
