As far as I know this is how we've thought it to work. The game says it halves physical moves, so it doubles defense.
Hmmm... ok, thanks for confirming my line of thought ;). I made some more calculations to see how it takes some physical hits (I'm assuming Fur Coat = Physical Defense Huge Power).
Naive Life Orb Salamence Outrage vs Max HP/Max Def Positive Nature Furfrou after Baby-Doll Eyes (Move Which Gain +1 Priority and reduces attack by -1)
38.14% - 45.20%
Well, you actually can switch in while it Dragon Dances, use Baby-Doll Eyes and take less damage from Outrage.
Naive Life Orb Salamence +1 Outrage vs Max HP/Max Def Positive Nature Furfrou
57.06%-67.23%
It looks worse than in case of Avalugg (but Avaluggs physical bulk is just massive) it still looks ok even without Baby-Doll Eyes. Well this certainly requires some mind games (opponent may just DD again when you Baby-Doll, although you should probably just use paralysis move) as at worst midprediction you take Outrage with solid comfort.
Life Orb Adamant Earthquake Mamoswine
30.79%-36.72%
Looks good, you may follow after with Baby-Doll Eyes to reduce damage to... 20.62%- 24.58%.
Adamant Life Orb Max Atk Gyarados +1 Waterfall vs Max HP/Max Def Positive Nature Furfrou
39.83%- 46.89%
Also looks good :D. The same, after Baby-Doll Eyes.
26.55%-31.64%
Adamant Max Atk Choice Band Stone Edge Tyranitar vs Max HP/Max Def Positive Nature Furfrou
40.11%-47.46%
Well, looks pretty good, taking into account this is Tyranitars main STAB attack. The same after Baby-Doll Eyes:
26.55%-31.64%
Good Tyranitar check, but for your own good avoid Choice Band Superpower.
Choice Band Adamant Metagross Meteor Mash vs Max HP/Max Def Positive Nature Furfrou
40.68%-47.74%
Also looks good. With Life Orb Meteor Mash (AgiliGross) it looks like this:
35.03%-41.53%
He looks weaker then Avalugg when it goes to tanking physical neutral hits and Fufrou doesn't work as well against dragons, but check/counter stuff which Avalugg struggles against (Tyranitar, Metagross, Stone Edge DD Gyarados, etc.), so his niche is a bit different. But his not so appealing base attack means he can't just smash his opposition back like Avalugg with STAB Avalanche so he'll probably need to rely on phazing like Skarmory. In OU this look like a really niche pick, rather for some stall teams (which his lack of damage won't hurt) or defensive pivot for some balanced/semi-stall/semi-offensive teams (I think his movepool should be really good as he is normal type, so this may be his another advantage over Avalugg) and Normal is just better typing than bad Ice one. I really doubt he'll hold in in OU (maybe with INCREDIBLE movepool, who knows), but looks like a really solid pick for future lower tiers (UU and lower) and his physical bulk is more than solid, probably backed up by good movepool, so should work like physically defensive support Pokemon.