The company still plans to open 46 retail stores this year inNorth America, consisting of 40 full-price stores and six outlets,including 14 market debuts. In time, North American can support 500retail stores, including "at least" 20 in Canada, said LewFrankfort, chairman and CEO.

"We have been careful to open new stores in a very balancedway," said Michael Tucci, president, retail division, NorthAmerica, adding that next year's openings are geared toward newmarkets.

Plans call for opening 10 net new stores in Japan in fiscal 2009and annually. But China and Korea will see expansion, as well.During the quarter, Coach completed the acquisition of its retailbusinesses in China from ImagineX, adding the company's 10 storesin China and Macau. Frankfort said the company will open 20 net newwholesale locations and five new stores in China, consisting of onein Hong Kong and four on the mainland. Over the next five years,the company expects 50 new locations in China.