Clusterstock  Aug 1  Comment 
(Reuters) - Handbag maker Coach Inc said it entered into a 20-year sale-and-leaseback agreement for its headquarters in New York City. Coach said it received about $707 million from the deal, before transaction costs of $26 million. The company...
Reuters  Aug 1  Comment 
* Coach Inc announces sale of its interest in 10 Hudson Yards
MarketWatch  Jul 27  Comment 
Coach Inc. shares rose 2% in Wednesday premarket trading after the accessories company was upgraded to outperform from neutral at Credit Suisse. Credit Suisse analysts believe the core of Coach's business has stabilized and it has regained brand...
Motley Fool  Jul 20  Comment 
The luxury retailer's business is improving, but investors who buy today could still get burned.
Benzinga  Jul 18  Comment 
Since Coach Inc (NYSE: COH)'s all-time high in 2012, the stock has fallen 44.17 percent. Some experts, including those at Baird, believe Coach is positioned well to recover. Baird’s Take Baird Equity Research Mark Altschwager and Drew North...
Benzinga  Jul 18  Comment 
  Coach Inc (NYSE: COH) shares gained 3.05 percent to touch a new 52-week high of $43.59. Baird upgraded Coach from Neutral to Outperform. Burlington Stores Inc (NYSE: BURL) shares rose 5.55 percent to reach a new 52-week high of...
MarketWatch  Jul 18  Comment 
Coach Inc. shares rose 1% in premarket trading Monday after the company was upgraded to outperform from neutral at Baird Equity Research based on findings of its latest quarterly handbag survey showing strong purchase intent. Analysts raised the...
newratings.com  Jul 14  Comment 
WASHINGTON (dpa-AFX) - Coach, Inc. (COH) announced the appointment of Wendy Kahn as CEO and Brand President, Stuart Weitzman, effective September 13, 2016. Kahn will succeed Wayne Kulkin, the brand's current CEO, who will become a consultant...
Clusterstock  Jun 9  Comment 
(Reuters) - Ralph Lauren Corp said it has appointed former Coach Inc executive Jane Nielsen as chief financial offer, two days after announcing a slew of other reforms. Nielsen will replace Robert Madore, who has been CFO since April 2015,...
Benzinga  Jun 8  Comment 
Piper Jaffray analysts Erinn Murphy and James House highlighted PVH Corp (NYSE: PVH), Coach Inc (NYSE: COH) and Sequential Brands Group Inc (NASDAQ: SQBG) as the most compelling names to own as the brokerage headed into its 36th annual consumer...


Coach Inc. (NYSE: COH) is a leading retailer of premium handbags and accessories, located primarily in North America and has recently expanded into Asian markets. Basing its image on "affordable luxury," Coach seeks to establish a premium brand that caters to affluent consumers but also provides lower-priced goods to appeal to the demand of middle-class customers.

Due to its effective merchandising and brand-building, Coach has boasted high operating margins and increasing popularity within the U.S. and Japan for years, even in the suffering American economy. COH also intends to take advantage of increasing luxury consumption in China by taking more control of its retail operations there and building its own stores instead of relying on third-party retailers. As COH continues to develop its ultra-luxury collections, it will share in the recent increase in spending in luxury good markets as the affluent release pent-up spending power from the last year. [1]

Business Overview

Coach is a leading American manufacturer and retailer of leather goods, accessories and apparel for men and women. Coach occupies the affordable luxury segment, which provides high-end merchandise for both high and middle-income consumers. For example, prices for a Coach handbag can range from $298 to $6,000.[2]

Business Segments

Coach is divided into three main revenue segments:

  • Handbags (63% of net sales): There are usually 3 - 4 collections per quarter and 4 - 7 styles per collection. These collections feature classic and fashion designs.
  • Accessories (28% of net sales): These include small leather goods, novelty accessories, and belts.
  • Other products (9% of net sales): These include footwear, business cases, jewelry, wearables, sunwear, travel bags, fragrance, and watches.[3]

Trends and Forces

Coach Seeks to Take Advantage of China's Growing Affluent Class

Coach has primarily stayed focused in North America and Japan. However, China is becoming an increasingly important market for luxury retailers. The rise of China's middle class has led to an increase in disposable income and thus an increase in potential customers. China spends more than $2 billion a year on luxury products.[4] What this means is that there is a growing affluent class in China that is capable of purchasing Coach products across all price points.

Luxury Image Essential for Sales

As with any luxury or affordable luxury retailer, Coach heavily relies on an image of exclusivity to fuel interest and sales of its products. A luxury company can lose its "luxury" status if the brand becomes too popular or too accessible. Coach thus takes a risk by having factory stores that sell discounted merchandise. None of Coach's competitors, such as Louis Vuitton and Gucci, have factory stores--they would be in direct opposition to the air of exclusivity the brands seek to cultivate. However, Coach protects its luxury status by placing its factory stores at least 60 miles away from its full-price locations.[5] In addition, the factory stores never sell the latest merchandise--they sell last year's or irregular pieces in addition to products that are manufactured specifically for the factory store. Coach never has sales at its full-price stores and does not allow retailers such as Macy's Inc. (M) to discount its merchandise. The result of these actions is that the factory stores and flagship locations serve two different demographics and are separate enough that the factory segment does not tarnish the overall image of the brand.[5]


Most of Coach's closest competitors are either privately owned or owned by larger European conglomerates of various luxury brands. Consequently, comparative data is unavailable. This includes Louis Vuitton and Fendi, both owned by LVMH Moet Hennessy L.V. (LVMUY), and Gucci Group.

Coach's business model is chiefly distinguished by its stress on "accessible luxury." This model thus reaches a larger demographic compared to many of Coach's higher-priced competitors, including Louis Vuitton, Gucci, and Prada. These competitors tend to focus on a higher income, high-fashion demographic. Companies like Dooney & Burke and Cole Haan also stress "accessible luxury" and are Coach's most successful competitors; however, Coach's market share has continued to increase in their presence.


  1. Luxury Spending Sees a Boost
  2. Coach website
  3. http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDE1NzM1fENoaWxkSUQ9NDI3ODU1fFR5cGU9MQ==&t=1
  4. Joseph Chaney. Handbag brand Coach plans major expansion in China..
  5. 5.0 5.1 Coach's Split Personality.
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