NEW YORK ( TheStreet) -- Coach is learning a hard lesson for a luxury-goods maker: sometimes the only way to drive sales is by lowering prices. While the aspirational handbag retailer posted a 32% slump in fourth-quarter earnings, revised results were in-line with analysts' expectations. More importantly, while most of the retail space was shrinking, Coach actually opened up more stores, expanding its international business and rolling out a new brand. During the quarter, the company earned $145.8 million, or 45 cents a share, compared with $213.5 million, or 62 cents, in the year-ago period. Excluding one-time items, profit was 43 cents a share, in-line with analysts' expectations. Revenue dropped less than 1% to $777.7 million, from $781.5 million last year, while same-store sales fell 6.1%. Sales were boosted by Coach's new wallet-friendly line of handbags in the range of $200 to $300, which has improved full-price sales in the United States during the quarter. Coach said it will launch a new global brand called Reed Krakoff in 2010, which will include all women's ready-to-wear, handbags, women's accessories, footwear and jewelry. "We believe that this concept will serve to define the new American luxury and engage a different customer," CEO Lew Frankfort said in a statement. Coach also plans to open 20 new North American retail stores in fiscal 2010 and accelerate store openings in China, where sales have been strong.