Luxury Retail:What Coach Has Going For It

We've seen our company improve about 20 points,said Coach CEO Victor Luis.We have continued growth in Europe and are doubling our China business.We're really pleased with the Chinese consumer internationally.Tourist flows are up in Europe and Japan.The consumer is looking for quality at great value,and Coach is uniquely situated to meet that need.*
In general,we see ourselves taking share from the traditional European luxury players.Our number one priority is the Coach brand,remodeling our store fleet.By the end of June,we will be 40% remodeled.We have tremendous confidence in the handbag and accessories space.It's the number one investment that women-and increasingly,men-make in their wardrobe.*
Our Stuart Weitzman brand is helping us in the footwear space.In spite of the warm holiday,they were number one in boot sales.*
Coach offers accessories and gifts for men and women,from handbags and men's bags to women's and men's small leather goods;footwear;outerwear;watches;fragrances;and jewelry.*
Coach,Inc (COH)

Luxury Retail:Coach Versus Kors

Luxury goods retailer Coach was severely punished by an earnings miss recently.Although net sales and earnings rose 4% on the year,they fell 2% in the US.The holiday season was challenging for the chain as competition has heated up from the likes of Michael Kors.
Kors is a relatively young enterprise in comparison to the more mature Coach.It has more potential for growth in the developed world.While Coach has more than 800 stores,Kors has only 237.Plus,the American designer's business is more diversified,selling clothing as well as shoes,handbags and accessories.It is better positioned to be a lifestyle brand.
On the other hand,Coach is concentrating on expanding Asian operations at the moment,which is capital intensive.Even so,margins are stable.Once those costs have been absorbed,the company stands to do well from emerging Asia and its upward mobility.
As well,the spending patterns of Asia are different.The Asian stores will prosper more at the Asian New Year season than at Christmas.That means the earnings for Q1 may be enhanced significantly.Wall Street docked Coach stock 15% in a knee jerk way,failing to take this subtlety into account.
In addition,Coach is paying a decent dividend of around 2.3%,while Kors is paying nothng.Coach's run may not be over after all.
Investor sentiment was 98% bullish for Kors on Monday,and neutral for Coach,according to MarketWatch.
Coach Inc(COH),Michael Kors Ltd(KORS)

Coach Gets An Upgrade

Luxury retailer Coach,which offers a line of fine leather goods,received an upgrade from JP Morgan.The old investment firm raised Coach from hold to buy,also increasing its price target for the stock from 35 to 40 dollars.JP Morgan cited Coach's improving margins and increased square footage.
As the affluent's portfolios rebound from the financial crisis,they are returning to the stores.Another member of the group that is benefiting is department store chain Saks.Others to watch for include department store Nordstrom and jeweler Tiffany.