cut down on production costs going forward

Coach star ,cheap nike shoes,jordan shoesCoach Wallets is planning to shift production outside of China to places like Vietnam and India as production costs in China increase due to a rise in labor costs. The move indicates Coach’s concerns over erosion to profit margins. While shifting production to new regions might help discount coach handbags cut down on production costs going forward,Air Jordan Shoes,jordan shoes,18 cheaboot, the initial expenditure required to set-up production capabilities or establish ties with manufactures could pose a near-term headwind to profit margins. The firm plans to have half of its handbags and accessories made outside of China in the next 4 -5 years and this could mean a significant increase in the firm’s capital expenditures in the years ahead. We estimate a 1% increase in Coach New Arrival ’s capital expenditure as a percent of revenues in 2011 could result in a 3% downside to coach online outlet store ’s stock value. Tags: Coach Wallets Coach New Arrival discount coach handbags coach online outlet store