Why Coach Will Keep Rebounding

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, luxury handbag maker Coach (NYSE: COH  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Coach and see what CAPS investors are saying about the stock right now.

Coach facts

 

 

Headquarters (founded)

New York, N.Y. (1941)

Market Cap

$16.1 billion

Industry

Apparel, accessories, and luxury goods

Trailing-12-Month Revenue

$5.0 billion

Management

Chairman/CEO Lew Frankfort

President/COO Jerry Stritzke

Return on Equity (average, past 3 years)

52%

Cash/Debt

$928.5 million/$22.6 million

Dividend Yield

2.1%

Competitors

Michael Kors Holdings 

Ralph Lauren 

Tiffany

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 3,117 members who have rated Coach believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, TMFInnovator, tapped the stock as a particularly solid bargain opportunity:

Coach is on the clearance rack [these] 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%. ...

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.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its four-star rating, Coach may not be your top choice.

To learn about two other retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2395185, ~/Articles/ArticleHandler.aspx, 8/28/2014 1:10:46 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement