Luxury handbags and accessories maker Coach Inc. (New York) announced profits fell 29 percent in its fiscal third quarter as sales were nearly flat in the recession.
Sales in stores open at least one year declined 4.2 percent, compared to the previous quarter's same-store sales, which fell more than 13 percent. However, chairman and ceo Lew Frankfort says sales are stabilizing to pre-holiday levels at full-price and off-price factory stores.
During the quarter, Coach cut 150 U.S. corporate staff, closed four retail stores and closed a sample-making plant in Italy. At the end of June, the company will launch a collection of bags under the "Poppy" name with a lower price point.
"Our goal is to provide our consumer with more choices at prices she's willing to spend or is able to afford," Frankfort said in a conference call with analysts.