Coach Shares Climb Ahead of Poppy Launch

In what could be called a fairly obvious maneuver during a once-in-a-generation recession,Coach(COH Quote) is lowering its prices. But what will it do when the economy rebounds?

This Friday, the aspirational retailer's new Poppy collection will officially launch, and is expected to boost store sales the moment it does, Lazard Capital Markets analyst Todd Slater said in a note on Monday.

With prices that start at $198, the line is intended to appeal to the somewhat oxymoronic "budget-conscious luxury consumer." The Poppy collection is part of Coach's plan to lower prices 10% to 15% over the next year. The company will offer about half of its handbags for $200 to $300.

Slater increased his price target to $32 from $30 as a result. ...