While investors are selling retail stocks to annual lows, I turn to Coach, the retailer of leather handbags and women's accessories. the company released it's IPO in 2000, and has experienced some surprising gains; although it's stock is now more than 30% off its highs. Coach was spun off by Sara Lee in its starting years. In the late 1990s, it's CEO, Lew Frankfurt, negotiated and finally convinced Sara Lee to liberate Coach. Since then, the company has a strong devotion to their employees, offering a concentrated human resource staff. Coach is
valued at just $11 Billion has doubled the women handbag industry from $2.5 Billion to $5 Billion. Women are now buying an average of four handbags per year (I'm sure you can agree... Coach is popping up everwhere lately). The company has expanded its presence by integrating fashion by offering more colors, shapes and extra space for laptops and a BlackBerry. Most retail companies have the problem of building up too much inventory, but thats no problem for Coach. The company has managed to drive massive sales growth, while controlling low inventory. In the next 10 years, Coach will open up stores outside the U.S. In Japan, the company generates 20% of its sales overall in the international market. The
Bottom Line, the company has $485 million in revenue, a strong balance sheet, 17% to 18% profit growth and good management under its CEO, Lew Frankfurt. Is it a buy? Not for now at least, the stock is way too expensive, wait until it drops a few points and buy. Expect to see high performance for the holiday season. Definately, keep an eye out Coach.
Damanick Dantes does not own Coach. His views and reccomendations are up to the investor themselves. Results vary, seek proffessional advice before any decision is made.
While investors are selling retail stocks to annual lows, I turn to Coach, the retailer of leather handbags and women's accessories. the company released it's IPO in 2000, and has experienced some surprising gains; although it's stock is now more than 30% off its highs. Coach was spun off by Sara Lee in its starting years. In the late 1990s, it's CEO, Lew Frankfurt, negotiated and finally convinced Sara Lee to liberate Coach. Since then, the company has a strong devotion to their employees, offering a concentrated human resource staff. Coach is
valued at just $11 Billion has doubled the women handbag industry from $2.5 Billion to $5 Billion. Women are now buying an average of four handbags per year (I'm sure you can agree... Coach is popping up everwhere lately). The company has expanded its presence by integrating fashion by offering more colors, shapes and extra space for laptops and a BlackBerry. Most retail companies have the problem of building up too much inventory, but thats no problem for Coach. The company has managed to drive massive sales growth, while controlling low inventory. In the next 10 years, Coach will open up stores outside the U.S. In Japan, the company generates 20% of its sales overall in the international market. The Bottom Line, the company has $485 million in revenue, a strong balance sheet, 17% to 18% profit growth and good management under its CEO, Lew Frankfurt. Is it a buy? Not for now at least, the stock is way too expensive, wait until it drops a few points and buy. Expect to see high performance for the holiday season. Definately, keep an eye out Coach. Damanick Dantes does not own Coach. His views and reccomendations are up to the investor themselves. Results vary, seek proffessional advice before any decision is made.
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