Coach, Inc. (NYSE:COH)

CAPS Rating: 4 out of 5

The Company is a American marketer of fine accessories and gifts for men and women. Its product offerings include handbags, women's and men's accessories, footwear, outerwear, business cases, sunwear, watches, travel bags, jewelry and fragrance.


Player Avatar TMFInnovator (42.90) Submitted: 4/22/2013 1:36:37 PM : Outperform Start Price: $48.15 COH Score: -56.72

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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