Also Greenberger likes their marketing strategy into year's end.
"Coach has a strategy this year that every time we go to the mall we'll see something new at the Coach store that will give shoppers new reasons to buy. Also there's a great trend in small handbags that Coach is positioned for."
What's the bottom line?
"We think Coach is very well positioned to win at holiday," Greenberger says.
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RISING INPUT COSTS
Speaking of shopping, the traders are closely watching the action in Procter & Gamble on Wednesday after the company said higher raw material costs hurt gross margins.
In fact higher costs are a theme in many earnings reports this season.
Kimberly Clark said on its conference call the cost of inflation was the highest ever in the third quarter, while JPMorgan took down estimates on Sanderson Farms and Tyson due to high corn costs.
Concerns over rising commodity costs have also caused a sell off in T-shirt maker Hanesbrands .
What’s the trade?
Cotton prices are up 73% year over year and at some point that comes home to roost, says Patty Edwards. We'll soon see higher prices or margin compression. It's something to watch closely.
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Trader disclosure: On Oct. 27, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders;Terranova owns (APA), (AAPL), (AXP), (C), (CRM), (FCX), (GOOG), (GS), (IBM), (ISRG), (JPM), (MCD), (MDT), (MMM), (NBR), (NKE), (ORCL), (PEP), (PCP), (TBT), (TLT), (UPL), (VRTS), (XBI); Cortes owns (K); Cortes owns (TSN); Cortes is short crude oil; Cortes is short gold; Cortes is short (RSX); Cortes is short the U.K. Pound; Cortes owns the S&P 500
For Brian Kelly
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For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
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For Patty Edwards
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For Kimberly Greenberger
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For Tim Guleri
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