Coach’s Profits Slump, Paul Smith’s Rise!

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• Coach's profits fell 5.8 percent this quarter. But never fear! They plan to bounce back this holiday season by introducing a new $98 wallet and a $298 Madison satchel with abstract geometric Coach logos. [WSJ]

Paul Smith explains how he's showing 6 percent gains in sales while department-store sales have slumped. "It's not just about clothes; you have to enhance the presence with alternative things." Translation: Sell knickknacks like books, ceramics, vintage vinyl, etc. [WWD]

• In a rough economy, the best sellers this fall have been versatile classics: a $88 heather ruffle cami at J.Crew, a $225 khaki trench at Gap, and a $165 long-sleeved V-neck sweaterdress at Lacoste. However Club Monaco's most popular item was a $129 pleated gold-brocade flared miniskirt. [WWD]

• Knitwear manufacturers are producing less cashmere for spring because they don't think people will spend money on it. [WWD]

• They're just like us! Anna Wintour caught a Sunday matinee of W. at Regal Cinemas in Union Square. We're guessing she skipped the front row, but did she run when she exited? [NYP]