Those are valid fears. Otherwise, how could this stock go down more than 8% in 5 days. However, fears are always cleared by time.
First, KORS does eat Coah's lunch in the last few quarters, but Coach has comeback this quarter. Coach's management knows it. That's why they roll our the huge turnaround effort, i.e. the Legacy collection and the online initiative. The Legacy collection is so hot that all major stores my team observed show much higher traffic than Q2.
Second, regarding China, there is a risk of slowdown. However, China only consists of less than 10% of Coach's revenue. Coach also tries to expand to markets such as Korea and Singapore.
Overall, Coach is not priced at 24+ P/E at this beginning of this year. At P/E around 18, the stock is fairly valued. At P/E of 16, it is undervalued.