Coach CEO Still Sees Luxurious Earnings
Posh accessory-maker Coach announced it would close its corporate accounts business and its stock dropped more than 5%. So why is Chief Executive Lew Frankfort "more optimistic than ever"? The CEO explained his rosy outlook to "Closing Bell" viewers.
The firm's earnings have risen 30% every quarter over the last five years. While Coach cut its guidance, Frankfort told CNBC's Maria Bartiromo that next year, sales are certain to grow by "at least" 20%, and earnings will grow a minimum of 21%.
"Our category is growing quickly" and Coach "is relatively underdeveloped in North America," he said. This year, the famed maker of handbags and other must-have accessories plans 40 store openings in Northa America, and 30 openings globally -- with seven of those in China.