A friend of mine was up at Woodbury Commons in New York at the Coach Outlet store, and she said the lines were so long that they could only let a limited number in the store at a time. Sounds good to me.
Outlet customers are not reliable COH buyers. COH makes good profits from emotional "GOT to HAVE" new issues collectors that shop only at regular COH store.. It does not have to to be in same class as LV.. There are more young office ladies with 'GOT TO HAVE NEWLY ISSUED COH BAGS" ( they do not want to be seen carrying outlet mdses). more growth and more total SALE volume.
I beg to differ bonked. Whether outlet or direct, both customers equally like to bags.
The outlet stores enable COH to move transitional inventories successfully and contribute bigtime to COH profits.
Moreover, they maintain better margin than they would moving the stuff out to closeout channel and companies like Overstock. And every retailer has overstock - it's part of the business. That's why the closeout industry is so huge.
Cramer, I guess I was napping because all I heard him say was COH is an amazing amazing company. So far as his mention of COH being high-end, in the context of WMT and Target they are - think that is probably his benchmark for calling COH a super high end company.