Player Avatar TMFJMo (71.15) Submitted: 7/11/2013 8:42:20 AM : Outperform Start Price: $57.62 COH Score: -57.75

Still a very powerful brand in retail, plenty of international appeal and transformation into lifestyle brand should give it a longer lifespan. Change in management is a big question mark as Lew Frankfort is a major reason for the company's success to date and Krakoff leaving is also concerning. However Vevers should bring plenty of experience and a fresh set of eyes. The stock today isn't assuming much growth at all. Plenty of room to run.

Member Avatar EightTrack4 (< 20) Submitted: 7/17/2013 6:55:22 PM
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I agree with your thesis and am eager to see how Victor Luis-Stuart Vevers combination works. If lifestyle brand transformation succeeds then the value of the "Coach" brand should receive a higher multiple (consistent with a perceived longer lifespan).

Coach is also relocating their headquarters which will eat up cash in the short-term. As the company easily transforms sales into cash, unless COH pays for new hq in cash, there should be lots of cash flow to repurchase stock to boost share eps if top line growth stagnates for a few quarters due to "lifestyle" transformation issues or China slowdown.

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