Coach Incorporated Security Analysis Paper
By: Kaylan Litteken
Finance 355: Investments
Coach Incorporated is a company established in 1941in Manhattan. Coach is in the fashion industry and this accessories manufacturer is one of the best known brands in North America. Coach was bought out by the Sara Lee Corporation in 1985 and started being publicly traded in 2000 on the New York Stock Exchange. Coach Incorporated prides it selves off of being one of the most dependable, unique, desirable, and fashionable brands in their industry. Coach has a disadvantage with its competition, being the only one publicly traded. It does not have access to the others financial records. Coach Incorporated likes to stick to tradition, whether it is in their designs or their Executive officers. Coach has a very diverse and experienced Executive team. Coach also just started a litigation campaign in 2009 called “Operation turnlock” to try and help with the counterfeit problem. They were recently award a large sum of money from one of the lawsuits the campaign filled for online counterfeit merchandise. Coach recently just gave $2 million to the Hurricane Sandy Relief Fund to help rebuild the community where Coach got its own start. Coach’s financial records are in order and are continuing to grow steadily even through the rough economy.
Coach Incorporated (Coach) is a company that designs and manufactures leather goods as well as other accessories. It was founded in a Manhattan loft in 1941 as a family-run workshop. This family used skill passed down from each generation to create a unique style that became quite desirable to consumers. ("Coach est. 1941," 2010) In 1985 Coach was purchased by Sara Lee Corporation. Also, in 2000, Coach as Incorporated in the state of Maryland and listed on the New York Stock Exchange for approximately 68 million shares. Their mission statement is “Coach seeks to be the leading brand of quality lifestyle accessories offering classic, modern American styling.” In today’s world, Coach is large company that still retains high standards and craftsmanship for their leather goods. They manufacture items such as purses, suit cases, wallets, watches, accessories, shoes, jewelry, sunglasses and etc. Some of these items are manufactured through their licensing partners. Such as Estee Lauder Companies Incorporated is Coach’s fragrance licensing partner. ("Reuters: Profile, coach," 2012) The Coach brand has ‘established a signature style and distinctive identity’ ("Coach Est. 1941," 2010) that almost everyone can recognize, which is why their prices reflect more of the name than the quality of the items. Coach is in the fashion industry and enough people are willing to pay for the name brand of Coach to keep them in business and to keep the prices high. The market the Coach is in is the fashion market, and their customers are middle to upper class men and women. Because their prices are high the market for their items has to be to a household that has extra money to spend and even though they sell mostly women related items they do sell men’s’ as well. Their competition includes Louis Vuitton, Fendi, Gucci Incorperated, Dooney and Bourke Incorporated, Katie Spade LLC, and Michael Kors Incorporated which are all privately owned companies. ("Yahoo finance," 2012)
Coach operates in two different ways, direct to customers and indirect. Indirect is where Coach sells their products to other retail stores and direct to customers is selling out of their own stores. Coach has over 500 stores in the United States and Canada as of June 30, 2012. They also have over 300 locations in Japan, China, Singapore and Taiwan. They have recently acquired new locations in Malaysia and South Korea in July and August. ("Coach est. 1941," 2010) Coach not only has their own retail stores, but also sells their merchandise through department stores and specialty retailer locations. With these locations,...
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