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Coach CEO Still Sees Luxurious Earnings

Tuesday, 24 Apr 2007 | 5:48 PM ET

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.

Coach Earnings
Earnings news and analysis for the luxury bag maker, with Lew Frankfort, Coach chairman & CEO and CNBC's Maria Bartiromo

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.

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  • With almost 30 years experience in business television, Bill Griffeth is co-anchor of the 3 p.m. ET hour of CNBC's "Closing Bell."

  • Kelly Evans

    Kelly Evans is an on-air correspondent, reporting across CNBC's business day programming. She is co-anchor of CNBC's "Squawk on the Street."