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Coach plans to shift production from China

Leather goods maker Coach (COH.NYSE) plans to gradually shift some production out of China amid rising labor costs, and move into lower-cost countries like India and Vietnam, the Wall Street Journal reported. Comparable-store sales grew by double digits in China, which the company’s chief executive Lew Frankfort called "our fastest-growing business." Coach reported that second-quarter profit increased 26% on a 19% increase in sales. The retailer also said it expects sales and profit to increase at least 10% for the rest of the year. It plans to repurchase as much as US$1.5 billion of shares by June 30, 2013. Coach has 52 retail stores in China.

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