Coach Inc (COH )
designs, produces and markets high quality hand bags, business cases, luggage,
leather outer wear and men’s and women’s accessories. It also licenses watches, footwear, and home
and office furniture. The company has
grown profits 30%+ annually for the last ten years earnings a 40%+ return on
equity. Its dividend has grown from $.08
in 2009 to an expected $1.30 in 2013. COH
was not immune to the declines in consumer spending in 2007-2009; however, as
the economy improved, it benefited from:
(1) improving
comparable store sales and rising margins due to:
(a)
product innovation,
(b)
a market savvy pricing strategy,
(c)
effective cost control program.
(2) expansion into men’s products as well as
internationally.
Negatives:
(1) it is in a
highly competitive industry,
(2) its customer
base is sensitive to economic conditions,
(3) fashion
obsolescence.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2009
Debt/ EPS Down Net Value Line
Equity ROE
Since 2002 Margin Rating
*many companies in COH ’s
industry do not pay a dividend
Chart
Note: COH stock
made good progress off its March 2009 low, quickly surpassing the downtrend off
its April 2007 high (straight red line) and the November 2008 trading high
(green line). Late in 2012, the stock
broke a long term uptrend (black lines) and re-set to an intermediate and long
term trading range (purple lines). The
wiggly red line is the 50 day moving average.
The Aggressive Growth Portfolio owns a 50% position in COH . The upper boundary of its Buy
Value Range Sell
Half Range
7/13
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