COH has finally decided to lower the price of its hand bags. I think COH is well positioned for the future. The lower price point in the U.S. would make its handbags affordable to the mass. Since Americans would have less money to spend in the coming years due to the shrinkage of wealth, a good quality bag price fairly would be much more attractive than LV or Gucci.
Internationally, COH bags are still expensive in Japan and China. COH is truly positioned as a luxury brand in Asia. The rise of the Asian consumerism would allow COH to maintain its price levels and take in a lot of profit.
At last there is the cyclical factor. COH stock price is bound to be hurt by the recession. I believe with its international exposure and sensible market positioning, it can get through this and come out much stronger when the economy recovers.