The New York-based purse brand Coach Inc. plans to open two outlet stores on Bend’s south side.

Last month, Coach applied for a building permit for work estimated at $250,000 inside 7,470 square feet at the Bend Factory Stores shopping center, on Southeast Third Street near Powers Road.

Site plans filed with the city show a dividing wall separating two stores: Coach Factory and Men’s Factory. The former would contain handbags, shoes and other products for women, while the latter would cater to men with leather jackets, wallets and other goods.

The products sold at Coach Factory stores are made specifically for those stores or are irregular or discontinued items, according to Coach’s most recent annual report. Product prices generally fall 10 to 15 percent below standard retail prices.

The stores will open before the holiday season, Coach spokeswoman Andrea Shaw Resnick wrote in an email.

Coach operates three stores in the Portland area, and it runs outlet stores in Lincoln City and Woodburn, according to the company’s website.

The company has been opening factory stores at a quicker rate than standard retail stores in North America in the past five fiscal years, according to data in the annual report. In the current fiscal year, Coach expects to open 25 factory stores in North America compared with 15 standard retail locations.

But in the second quarter of 2012, factory store sales growth fell below company expectations because of “an increasingly promotional environment,” CEO Lew Frankfort said in a news release.

“As a result,” Frankfort said, “we responded by reinstating our prior practice of in-store couponing in a cross-section of factory locations late in the period.”

Coach stock on Friday closed at $52.66 on the New York Stock Exchange, down from an all-time high of $77.28 in March.

In addition to Coach, Brooks Brothers should be opening a store at the Bend Factory Stores in “just a few months,” said the shopping center’s general manager, Sherry Short.