Coach Offers Consumers Lower Pricing: CEO Frankfort

While wary consumers have been tightening their purse strings this year, leather goods maker Coachexperienced a sales pickup by offering lower price points and targeting rapid expansion in China, company CEO Lew Frankfort told CNBC Tuesday.

"When a customer comes in our store and asks 'what's on sale?' we can show them a full-sized tote that would be for $198 that would have been $50 or $70 more in price just last year," said Frankfort.

Frankfort said that in order to attract the cautious consumer, Coach — which does not offer sales in its stores—gradually introduced products at price points 10 to 15 percent lower.

"We think the consumer will continue to be cautious. She's going to be judicious in the way she spends," Frankfort said. "Our challenge and job is to get a greater share of her closet even if she ultimately spends less."

The luxury handbag retailer's prices range from less than $100 to around $1,200 and targets young professional women, according to Frankfort.

Frankfort went on to say that Coach plans to expand its market share by focusing its efforts on overseas markets. It expects to open 30 new stores in China within the next year.

The luxury handbag retailer reported earnings of 64 cents per share Tuesday, beating analysts expectations of 56 cents per share.