Coach, Inc. (COH)

Gross Profit Margin 72%
Sales and Net Income steady YOY.
Cash doubled from 409 million to 994 million with only 24 million of debt.
TTM P/E of 18 is below its historic P/E.

Continued to open stores in the recession, and made pricing point changes.

Diversified overseas - about 1/3 of the stores are in Japan, only a few in China, but looking at aggressively expanding there.

It could pull back a bit from its run, but with it's P/E still relatively low, and expansion into other asian markets, it will outperform the S&P

Great profit ratio with low debt and a PE ratio below the industry

Coach is a leading U.S. designer and marketer of high-quality accessories. Founded in 1941, COH has over the past several years transformed the Coach brand, building on its popular core categories by introducing new products in a broader array of materials, styles and categories. The company has also implemented a flexible sourcing and manufacturing model, which it believes enables it to bring a broader range of products to market more rapidly and efficiently.

Coach has historical sales and eps growth rates of 24% and 39% respectively. With an ever increasing presence in Asia (Japan and Mainland China) Coach is set to continue growing sales at double digits for the next five years.

Coach's ratios compare very favourably to the apparel industry. Here are some examples. Gross Margin: Coach 75%, Industry 51%. Pre-Tax Margin: Coach 29%, Industry 13%. ROE: Coach 41%, Industry 25%.

It is in splendid financial condition with a debt/equity ratio of 0.01. It has consistent positve cash-flow and is sitting on a pile of cash (Quick ratio of 2.4) which it is using to fuel it's growth and pay back shareholders with small dividends and a considerable share repurchasing program.

Coach is a very well managed company with a well-known luxury brand. The fact that it has been able to grow sales at all over the past year, despite hostile macro-economics, is a testament to that fact.

Coach currently has a 20% share of the luxury handbag market in the U.S., 15% in Japan and 4% in China. Although the $25 billion global market for luxury handbag is seen to grow by only 5%-10% per annum in the next five years, Coach has been consistently gaining market shares in the U.S. and Japan. The next big growth opportunity comes from China where Coach has 28 locations and where it is planning to open 15 new locations this fiscal year, and is adding its first Asian distribution center in Shanghai.

It is currently sitting on $1 billion in cash and has very little debt making it a relatively safe investment in terms of financial risk. Coach, year after year, has been returning value to shareholders. With a newly instituted dividend and their consistent share repurchasing, long-term holders should continue to benefit from Coach's well managed growth and brand.

Good stock stuff happening

Has a mind of its own, performing well in the recession against all odds.

Chun Li is rockin' a Coach handbag.

Zangief told me it's a knock off though.

One of my favorite stocks for long term and retirement . My opinion CEO Lew frankfort is the best in the ceo in the world ! Lew Frankfort is widely credited with helping transform an old leather goods company into a fashion icon. Coach was founded in New York City in 1941, an old-world firm cranking out hard leather brief case. Mr. Frankfort from 2005-2008 was one of 30 “Most Respected CEO’s” globally.

Coach has many price points for the proudcts from luxury to simple shopper. Opening stores world wide in japan, china and many more in the future equals growth.

Their competitive advantage is their balance sheet, recognizable brand, no debt , buyback stock, shareholder friendly.

Their biggest competive advantage is many women are lemming , they all want to have the C on their purses. It is like harley davidson for men, a huge status symbol and Huge compeitive advantage for Coach! This is value stock.

WIll be a great stock for at least five year and I will own Coach stock as long as Lew Frankfort is at the helm , after that I will make my decision to get out or stay in this great one.

High quality products, high demand for products

Highlights

I see COH's unique luxury products enabling positioning

as a winning strategy in the current market,as U.S. shoppers are increasingly discriminating and value focused. WITH OUTSTANDING CEO'S AS MR. GLEN KING, along with outstanding team players throughout thier co. ---------- MAKING IT EASY TO REACH THIER GOALS "SUCH AS" ---COH enters (Jun.) with about 50% of its

handbag assortment at approximately $300 or less, which I see and expect to drive continued market share gains and sales growth in FY10.

I also see expansion in Japan and China supporting global

market share gains through 2015. ---I see 4% OR 5% sales growth in FY 10

I AM encouraged by the pickup in U.S. store traffic in July.

thanks to someones excellence ideas,---- Poppy launch .

I PREDICT a gross margin expansion of 20 basic

points to 72.1%

I believe COH ended 2008 WITH MONEY IN THE BANK AND WITH

LOADS OF CASH THIS CO IS ON TOP. FY 09 in solid shape and positioned for opportunities in FY 10 supported by a strong capital base and about $800 million in cash.

This makes me sleep better knowing that my investment in coach is headed to greatness.

Managment did the right thing and saved some money for a rainy day.

I CLOSE SIGN STORMING 03

They sell really unique handbags, etc. I finally saw their stuff in a Macy's store and was really impressed. Emerging middle and upper classes in China, etc., will be buying this stuff.

Visited the outlets and saw a lot of Asian women shopping in Coach. Actually that's one of the most popular among all shops there. Besides they are opening more stores in China and already had double digit growth in China.

No matter how much it eludes me, it seems the women in my life have to have a Coach purse (and more expensive matching wallet, in some cases). When former girlfriends were feeling down or celebratory, they would go and buy Coach. One drove two hours each way when she realized that her monthly budget would allow the purchase. When I took my little sister to a mountain condo, the prospect of skiing and hot tubs was not the cause for excitement, the proximity to the Coach outlet store was.

Female demand aside, COH does have a good management team and the business is very easy to understand-bags that are high-end enough to be noticed and recognized, but at a price that many will not be excluded from. Watch what happens during the economic recovery.

Coach sells a luxury item that was hit extremely hard by reduced disposable income. with plenty of cash and an extremely low amount of long term debt, they'll are well prepared to last until an economic upswing.

Consumerism is on its way out.

fool

bull

Good solid company

MFI following, all have negative Fool ratios but impressive 3 month gains

Coach is a quality product - women love nice bags; it will get it's day in the sun.