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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
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7 airsjordanorg1, 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
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