Player Avatar TMFInnovator (52.89) Submitted: 4/22/2013 1:36:37 PM : Outperform Start Price: $48.62 COH Score: -51.15

Coach is on the clearance rack this days, which presents a great opportunity for patient investors.

Their international focus is paying off. Coach grew NA revenues only 1% last year, but China revenues 40%. China's middle class is rapidly expanding and Coach's new CEO (Victor Luis) was previously head of international operations. This bodes well for further growth in Asia.

I like the credibility of management. They controversially deployed capital straight through the recession (their $240MM of CapEx from Jun '08-Jun'09 was their largest annual spend on record, significantly). This move was opportunistic - revenues shot back at a whiplash pace over the next three years.

Coach is continuing to invest in their business this year with focus on international operations. Critics continue to be skeptical, but I see it as another well-placed bet.

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