Bear Stearns analyst Randal Konik recently praised the company in a note to investors. "We find Coach's merchandise strategy attractive given its wide range of price points, classic and modern fashion perspectives, and varied store formats," Konik wrote.
"The company's business model breeds new customers and fosters loyalty from existing ones," Konik said.
"My colleage Kimberly Picciola highlighted a few concerns in her most recent Analyst Report: "Relying on fashion trends to drive sales is one of the risks Coach faces. Having repositioned itself as a more fashion-forward brand, the firm is more dependent on hitting the latest fad.... Additionally, as Coach adds higher-price novelty bags to its handbag collection, it risks tarnishing its image as an affordable luxury brand."
Doesn't Kimberly Picciola understand that Coach is in the fashion industry? Tarnish its image by producing high-priced novelty bags that have sold well? What industry does Kimberly Picciola normally cover and how long has she been an analyst?