Jenny from the block could very well bring lines around the block this spring at some Coach stores.
New Coach spokesperson Jennifer Lopez made a fashion statement on Monday, fresh off a stunning Super Bowl halftime show performance with Shakira. Coach released a photo of J Lo sporting a pair of new CitySole sneakers, a key new product line for the luxury accessories brand for the spring.
Coach clearly has big plans for J Lo (who signed on with Coach in November 2019) this year, as seen from the behind the scenes video below released several weeks ago. That much was confirmed in an interview with Coach executives this week. Investors and shoppers shouldn’t expect an exclusive J Lo line just yet, but rather a broader marketing push that could drive sales given the enormous global reach of the superstar.
“We don’t have a J Lo collection per se, but already internally — and probably externally —people are referring to the items she was photographed with as the J Lo bag and the J Lo shoe, already people are using it as an adjective around here,” Coach brand president and CEO Joshua Schulman told Yahoo Finance.
Tapestry, the parent company of Coach, would certainly welcome any magic from J Lo.
The retailer posted second fiscal quarter sales growth of 1% to $1.82 billion, slightly above Wall Street estimates. Earnings came in at $1.10 a share versus forecasts for $0.99. Coach global same-store sales rose 2%, marking the brand’s ninth straight quarter of gains. Kate Spade global same-store sales fell 4% as it continues to work through execution issues under prior management.
Tapestry slashed its fiscal 2020 earnings outlook to $2.15 to $2.24 a share mostly due to coronavirus store closures in China. Previously, Tapestry was looking for profits of $2.57 a share.
Brian Sozzi is an editor-at-large and co-anchor of The First Trade at Yahoo Finance. Watch The First Trade each day here at 9:00 a.m. ET or on Verizon FIOS channel 604. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.