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Strong handbag sales in China and Japan lift Coach.(Reuters) - Coach Factory Outlet Inc posted a 17.4 percent rise in quarterly profit as the company cut back on discounting in the United States while selling more handbags in China and Japan.Coach, whose shares were up 3.5 percent at $37.23 before the opening bell, has limited promotions and pulled out of more than 250 department stores as it tries to win back its premium-brand cachet.The company's net income rose to $199.7 million, or 71 cents per share, in the second quarter ended Dec. 31 from $170.1 million, or 61 cents per share, a year earlier.Coach's sales at North American stores open at least a year rose 3 percent, beating analysts' estimate of 2.4 percent, according to research firm Consensus Metrix. (Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by Anil D'Silva).The Makers Of The OG It Bag Just Made Fashion Girls VERY Happy.Back in the early-aughts, many of us budding fashion enthusiasts saved up our allowances to buy a logo-heavy Coach handbag as our first "investment piece." It still holds a soft spot in our hearts, although the brand's accessories have significantly matured since the monogram's heyday. With its Coach 1941 range, the Stuart Vevers-helmed label has been investing in — and seriously upping — its fashion credibility through new imagery, new ambassadors, and new collaborations. Following the incredible success of its capsule with Minnie Mouse, Coach is kicking up its pair-ups one seriously stylish notch: WWD reports that the New York-based company will debut a 15-piece collection with Rodarte. The Los Angeles label is beloved by the industry for its dreamy designs and for its overall elusiveness as a business. But you've certainly seen Rodarte's fantastical gowns on the likes of Kirsten Dunst, Ruth Negga, and Elle Fanning, among other silver-screen sirens. Last year, the brand collaborated with & Other Stories on an extensive collection that comprised ready-to-wear, footwear, and accessories. According to WWD, the Coach Factory Outlet Online capsule will be mostly apparel-centric, save for one handbag design — an apparent first for Rodarte. It's expected to drop in stores sometime in April."Rodarte and Coach Handbags are set to collaborate on a capsule collection," a representative for Rodarte told Refinery29 in a statement. "Stuart Vevers and Rodarte’s Kate and Laura Mulleavy first became acquainted as Coach and Rodarte have shown on the same day during New York Fashion Week. What started as a formal relationship developed into a mutual admiration, and then, a friendship. For the collaborative collection designed by the Mulleavys and Vevers, they were interested in exploring the idea of mixing the vocabularies of New York and Los Angeles."The limited supply will likely not deter all the fashion girls looking to buy into the Rodarte brand — like we saw with the speedy sell-out rate of its glittery capsule for & Other Stories (or even the hard-to-find pieces from its 2009 collaboration with Target) — which is normally in the four- and five-figure price range. (The garments in Coach's 1941, meanwhile, start at $165 and cap out at $2,795 — still expensive, but nowhere near Rodarte's main line.) Plus, nothing beats the thrill of scooping up a one-off, special-edition fashion item.We've reached out to Coach for comment, and will update our story when we hear back.Coach's Good Quarter Bucked The Tough Trends In Handbag Category.Coach Shoes reported its same-store sales, gross margins and EPS ahead of expectations. The Q2 beat was driven by slightly higher-than-expected top-line, solid gross margins and a lower tax rate.“North America’s brick & mortar comp came in +4 percent, which appears likely to be a standout in the challenged handbag market, given poor channel checks throughout the quarter and commentary from the department stores post-Holiday (specifically calling out weakness in handbags),” Brown commented.Coach kept its full-year EBIT guidance unchanged, representing 18.5–19 percent, while lowering its revenue growth projection. Although the positive trends at the company would likely to continue for the remainder of the fiscal year, the expected comp growth in the low-single-digit range is “generally factored into the current share price,” the analyst mentioned. He added that for shares to move higher, Coach Purse would need to generate mid-single-digit comps.

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