Seeking Alpha

Coach may be fashionable again in 2014: Barron's

  • "I have every confidence that under our leadership, [the company] will resume growth," Coach's (COH) Chairman and CEO Lew Frankfort tells Barron's, referencing an upcoming shakeup wherein he will assume the role of executive chairman, while current CCO Victor Luis will take the CEO reins.
  • Investors are hoping Luis can preside over a renaissance at the company which, thanks to "pinched" consumer spending and competition from the likes of Michael Kors," is "selling for [just] 16 times forward earnings estimates."
  • Analysts cited by Barron's seem generally upbeat about the prospects and with new products and designs on the way in 2014, Christopher Williams thinks "a few COH shares might make great stocking stuffers."
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Comments (12)
  • Philip Saglimbeni
    , contributor
    Comments (490) | Send Message
     
    Michael Kors is where the growth is at, stock doesn't trade too expensively either considering its robust revenue/EPS growth compared to competitors.

     

    $KORS has improving margins as well, in direct contrast to $COH, indicating it does not have to discount much even in weak shopping atmospheres. Coupled with a brand that is on fire right now and a rapidly expanding store count, why even buy $COH?

     

    Oh, Barron's . . .
    7 Dec 2013, 12:28 PM Reply Like
  • rheimerl
    , contributor
    Comments (423) | Send Message
     
    i think theres room in my "wifes closet" for both to do well!
    7 Dec 2013, 01:42 PM Reply Like
  • investbynumbers
    , contributor
    Comments (44) | Send Message
     
    sounds like a very expansive closet.
    7 Dec 2013, 03:16 PM Reply Like
  • deercreekvols
    , contributor
    Comments (6829) | Send Message
     
    I added shares of KORS this week.
    I have no interest in Coach, no matter what Barron's says.

     

    Happy Holidays.
    7 Dec 2013, 04:45 PM Reply Like
  • Philip Saglimbeni
    , contributor
    Comments (490) | Send Message
     
    deercreekvols,

     

    Agreed, happy holidays to you as well, are you still in $UA at all?

     

    Phil
    7 Dec 2013, 05:44 PM Reply Like
  • deercreekvols
    , contributor
    Comments (6829) | Send Message
     
    Mr. Saglimbeni,

     

    Seasons Greetings.

     

    I cashed out of UA in the mid $90 range some time ago. What a ride Under Armour provided! I do support UA by wearing their gear. Wind-proof, water-proof jackets are a must in WNY and I love UA's products. My children wear UA for HS sports (football, soccer and basketball)

     

    I have stayed pretty clear of retail. KORS was a company that my wife alerted me to and we both love what we see and I bought shares for my portfolio.

     

    Cheers.
    7 Dec 2013, 05:58 PM Reply Like
  • Philip Saglimbeni
    , contributor
    Comments (490) | Send Message
     
    Nice, congrats on the return! I always remembered you were a big supporter of the company, as am I. Good luck and continued success,

     

    Phil
    7 Dec 2013, 07:13 PM Reply Like
  • chopchop0
    , contributor
    Comments (3952) | Send Message
     
    agreed. COH has been called "cheap" by analysts for a couple of years now. and just look at that ugly chart.
    7 Dec 2013, 10:29 PM Reply Like
  • janegalt
    , contributor
    Comment (1) | Send Message
     
    Coh sells higher quality items, in my opinion.
    8 Dec 2013, 10:58 AM Reply Like
  • chopchop0
    , contributor
    Comments (3952) | Send Message
     
    "Coh sells higher quality items, in my opinion."

     

    That's your opinion, and the problem of the KORS/COH debate. Purses are a highly fickle industry, and KORS is in and COH is out. I just walked by the COH store in my mall again and it's deader than a door nail. KORS meanwhile is crazy every time I've walked by one.

     

    Way too fickle IMO to be investable (either one of them).
    9 Dec 2013, 02:28 AM Reply Like
  • twm3823
    , contributor
    Comments (167) | Send Message
     
    hmm, I say buy low, sell high....the KORS story is well-known, Coach is struggling a bit, but with a new CEO eager to prove his chops, I think it's a better longer-term investment
    7 Dec 2013, 05:29 PM Reply Like
  • tyzo
    , contributor
    Comments (36) | Send Message
     
    Long established international name recognition and status cache, will appeal to the emerging Chinese middle class. Their expansion into that country will pay off.
    Long COH LEAPS
    8 Dec 2013, 08:15 AM Reply Like
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