Articles for Coach

Coach Earnings Preview: Trends We’re Watching

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Friday, January 20th, 2012 by

As aspirational luxury retailer Coach (NYSE:COH) is scheduled to announce its Q2 fiscal 2012 results on January 24, analysts and investors will have a keen eye on the company’s sales in domestic market during holidays and gains made in China around the Chinese New Year. Additionally, we will be keenly following the company’s strategy in the U.S. and Europe amid weak macroeconomic conditions. Coach is the leading American marketer of luxury lifestyle handbags and other fashion accessories and competes with premium apparel and accessories players like Ralph Lauren(NYSE:RL), Liz Claiborne (NYSE:LIZ) and Ann (NYSE:ANN).

Check out our complete analysis of Coach

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Coach Readies for Luxury Spending Boost During Chinese New Year

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Thursday, January 19th, 2012 by

Aspirational luxury retailer Coach (NYSE:COH) may get a solid lift in sales as Chinese New Year, or Lunar New Year, nears. China is the largest market for Coach outside U.S., and with the Chinese luxury spending expected to increase significantly in the week leading to January 23rd, Coach may well witness its first 2012 bonanza. Coach is the leading American marketer of luxury lifestyle handbags and other fashion accessories and competes with premium apparel and accessories players like Ralph Lauren (NYSE:RL), Liz Claiborne (NYSE:LIZ) and Ann (NYSE:ANN).

We have a price estimate of $68.20 for Coach stock, which is roughly 7% ahead the current market price.

Check out our complete analysis of Coach

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Coach Opens First Official Online Store in China on Taobao Mall

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Wednesday, December 14th, 2011 by

Coach (NYSE:COH) announced the opening of its first official online store in China for one month on Taobao Mall (coach.tmall.com), in celebration of Coach’s 70th anniversary. Taobao Mall is China’s largest business-to-consumer (B2C) online market place by transaction value. We believe the move is a smart one and reflects Coach’s growing ambitions and popularity in the Chinese luxury market. Coach is the leading American marketer of luxury lifestyle handbags and other fashion accessories and competes with premium apparel and accessories players like Polo Ralph Lauren’s (NYSE:RL), Liz Claiborne (NYSE:LIZ) and AnnTaylor (NYSE:ANN).

We have a price estimate of $68.20 for Coach stock, which is roughly 10% ahead the current market price.

Check out our complete analysis of Coach

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Luxury Stocks are Safer Bets in the Holiday Season

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Thursday, December 8th, 2011 by

Holidays luxury retailers have been less affected by the ongoing economic uncertainty versus there more budget focused peers. While low end shoppers are getting more frugal, the high end customer base is less affected and not pulling back on spending.  In addition to this spending in rapidly growing economies are supporting sales for luxury brands like Ralph Lauren (NYSE:RL) and Coach (NYSE:COH) while value oriented retailers such as Gap Inc. (NYSE:GPS) and Aeropostale (NYSE:ARO) struggle.

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Post Earnings, Coach Readies for the Holidays to Support Stock’s Surge

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Monday, November 7th, 2011 by

Aspirational luxury retailer Coach (NYSE:COH) carried its upward momentum last week as the company looks well positioned for another excellent holiday season. Earlier Coach had posted better-than-expected first-quarter 2012 results hinging on impressive performance in North America and China and now with with a meticulously laid down strategy for this holiday season, the company is all set for another great quarter. Coach is the leading American marketer of luxury lifestyle handbags and other fashion accessories and competes with premium apparel and accessories players like Polo Ralph Lauren’s (NYSE:RL), Liz Claiborne (NYSE:LIZ) and AnnTaylor (NYSE:ANN).

Check out our complete analysis of Coach

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Coach Revised to $68: Strong Outlook for China & N. America Biz

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Tuesday, November 1st, 2011 by

American aspirational luxury retailer Coach (NYSE:COH) kicked off its fiscal 2012 with a strong Q1 earnings release. The major highlights of the earnings were impressive performance in Coach’s North American and Chinese business along with a strong double digit increase in internet sales. The company also improved its margins compared to last quarter, primarily due to increase  in sales of its high-end handbags. Coach is the leading American marketer of luxury lifestyle handbags and other fashion accessories and competes with premium apparel and accessories players like Polo Ralph Lauren’s (NYSE:RL), Liz Claiborne (NYSE:LIZ) and AnnTaylor (NYSE:ANN).

We have a revised price estimate of $68.20 for Coach stock, which is roughly 5% ahead the current market price. The adjustments in our price estimates primarily reflects the change in company’s current net cash/debt position along with our positive outlook behind margin recovery in 2012.

Check out our complete analysis of Coach

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Coach Targets European Luxury Demand with London Flagship Store

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Tuesday, September 20th, 2011 by

Coach has opened its first European flagship store in London as part of its international push. The store located at 41 New Bond street was opened on September 7th to mark the 70th anniversary of the company. Coach is a leading American marketer of luxury lifestyle handbags and other fashion accessories and competes with premium apparel and accessories players like Polo Ralph Lauren’s (NYSE:RL), Liz Claiborne (NYSE:LIZ) and AnnTaylor (NYSE:ANN).

We have a  $58.50 price estimate for Coach stock, which is roughly 10% above the current market price.

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Coach Balances China Growth with Rising Cost Pressures

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Monday, August 8th, 2011 by

Coach (NYSE:COH) posted strong results in its Q4 fiscal year results last week though its shares took a hit on continued cost pressures from higher raw materials and labor costs. Gross margins sagged some to 71.8% from 73.8% in the same quarter last year due to a rise in living standards and the cost of labor increases in outsourcing locations. Coach is the leading American marketer of luxury lifestyle handbags and other fashion accessories and competes with premium apparel and accessories players like Polo Ralph Lauren’s (NYSE:RL), Liz Claiborne (NYSE:LIZ) and AnnTaylor (NYSE:ANN).

We have a revised price estimate of $58.50 for Coach stock, which is roughly in line with the current market price. The adjustments in our price estimate primarily reflects adjustments made to the company’s current net cash/debt position.

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Handbags Aside, Accessories Worth ~30% of Coach’s Stock Value

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Friday, June 3rd, 2011 by

Accessories like belts, wallets, wristlets & other items are the second biggest contributors behind handbags for Coach Inc. (NYSE:COH) and represent around 30% of the firm’s estimated equity value. These two divisions make up just under 90% of the stock value by our estimates and help differentiate the company from other retailers like Abercrombie & Fitch (NYSE:ANF), American Eagle (NYSE:AEO), AnnTaylor(NYSE:ANN) and Gap (NYSE:GPS). Below we take a quick look at the outlook for the two main drivers to our accessories forecast: daily revenue per Coach store and EBITDA margin.

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Rise in Luxury Spending and Demand for Pricier Handbags Should Lift Coach Stock

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Monday, May 30th, 2011 by

Coach Inc. (NYSE:COH), the leading American marketer of luxury lifestyle handbags and other fashion accessories, has reportedly witnessed an increase in sales of its fancier handbags (priced over $400) driven by a rise in luxury spending. The firm competes with with other premium apparel and accessories players like Polo Ralph Lauren (NYSE:RL), Liz Claiborne (NYSE:LIZ) and Ann (NYSE:ANN).

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