Coach Responds to Falling Sales By Raising Prices

Photograph by Scott Eells/Bloomberg

Coach, long the handbag maker of choice for the reasonably wealthy, is losing its grip on the 5 percent. As it faces increasing competition from Kate Spade, J. Crew, and others eager to court women who can and will pay $200 to $400 for a handbag, Coach is embracing a strategy only the rich will appreciate: It is raising its prices.

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