UPDATE 1-Coach says Prada US head to take reins of new unit

* Head of Prada's US operations tapped for Reed Krakoff

* Line will sell clothing and accessories
(Adds Coach results, details)

SAN FRANCISCO, Sept 15 (Reuters) - Coach Inc (COH.N) said
on Tuesday it had hired the head of luxury brand Prada's U.S.
operations to run its new Reed Krakoff division, which will
sell clothing, handbags, shoes and jewelry.

Graziano de Boni, the president and chief executive of
Prada USA, will become the new president of the Reed Krakoff
brand, said Coach spokeswoman Andrea Resnick.

De Boni, a former executive at Valentino, had been in his
role at Prada only since mid-2008.

Prada, the privately owned Italian global luxury brand,
could not be reached for comment.

The Reed Krakoff luxury line, named after Coach's president
and executive creative director, is expected to launch early
next year and be sold in a small number of stand-alone stores
and a limited number of boutiques and specialty stores. Prices
will range from $495 to $1,195 and the items will not be sold
in Coach stores.

The move to launch the Reed Krakoff line has come even as
Coach lowers prices on some of its handbags to appeal to newly
frugal shoppers. Analysts say it is a risky time to launch a
luxury line and say there is no guarantee that Coach's strength
in handbags will translate into success selling apparel.

In its most recent quarter, Coach posted lower quarterly
profit that matched Wall Street expectations, but increased
investments and lower profit margins at the leather goods
company worried some investors.
(Reporting by Alexandria Sage, editing by Maureen Bavdek and
Matthew Lewis)