Coach Incorporated Security Analysis Paper Essay

Abstract coach-and-four incorporated is a go with effected in 1941in Manhattan. rail is in the bearing indus assay and this accessories occasionr is bingle of the best enduren brands in North America. develop was bought out by the Sara Lee Corporation in 1985 and started macrocosm publicly traded in 2000 on the crude York Stock Ex stir. motorbus Incorporated prides it selves off of be adept of the most dependable, unique, desirable, and fashionable brands in their industry. go-cart has a disadvantage with its competitor, being the only one publicly traded. It does non fuck off access to the otherwises pecuniary records. tutor Incorporated sames to stick to tradition, whether it is in their designs or their executive director officers. baby carriage has a very diverse and experienced Executive team. educate in like manner expert started a litigation weightlift in 2009 called Operation turnlock to try and dish up with the falsify problem. They were of late award a large conglutination of money from one of the honorsuits the campaign filled for online counterfeit merchandise. busbar recently just gave $2 million to the Hurricane Sandy Relief breed to help rebuild the community where groom got its own start. grooms mo wampumary records be in order and atomic number 18 continuing to grow steady even through the rough economy. pusher Incorporated ( aim) is a companion 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 complicate from each generation to create a unique style that became quite a 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 bloody shameland and listed on the New York Stock Exchange for approximately 68 million sh atomic number 18s. Their foreign mission statement is Coach seeks to be the leading brand of quality lifestyle accessories offering classic, modern American styling. In todays world, Coach is large company that until now retains gamy 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 Coachs fragrance licensing partner. (Reuters Profile, coach, 2012) The Coach brand has established a soupcon style and distinctive identity (Coach Est. 1941, 2010) that almost everyone can recognize, which is wherefore their expenses reflect more of the line than the quality of the items. Coach is in the fashion industry and enough populate are giveing to pay for the name brand of Coach to keep them in business and to keep the prices high.The market place the Coach is in is the fashion market, and their customers are middle to upp er class men and women. Because their prices are high the market for their items has to be to a domicile that has extra money to spend and even though they sell largely women related items they do sell mens 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. ( chawbacon 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 adduces and Canada as of June 30, 2012. They also fetch over 300 locations in Japan, China, Singapore and Taiwan. They have recently acquired bracing 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 sec tion stores and specialty retailer locations.With these locations, Coach is also present in Europe, Asia, and Latin America. As of 1999 Coach launched their first on-line store available to customers in the United States, Canada, and Japan. They also have informational websites in twenty other countries. In the future, Coach plans to growth international distribution and target international consumers, especially in Asia. They also plan on staying one of the most commonplace name brand accessory companies in North America. (Coach est. 1941, 2010)Coach also has very high standards for their brand. Coach states that The Coach brand represents a unique synthesis of magic and logic that stands for quality, authenticity, repute and a genuinely aspirational, distinctive American style. (Coach est. 1941, 2010) They hold account strength to their customers. They also batten down great service and that their customers needs are always met. Coach seeks retentive name relationships with all their costumers by treating them this way. This is one reason Coach is still or so and doing well as a company even with their high prices. They are dedicated to their honesty, trust, satisfaction, and fairness to their consumers, business, and community. They strive to increase consumer and shareholder value. (Coach est. 1941, 2010)They have a small number of executive director officers with only seven. number 1 on the list is Lew capital of Kentucky the lead and Chief Executive military officer. Mr. capital of Kentucky conjugated the Coach company is 1979 as debility President of New Business Development. Mr. Frankfort has appointed President of Coach in 1985 and named Chairman and CEO in 1995. When Mr. Frankfort started at Coach, Coachs gross sales were about $6 million. Today Coachs sales are $4.8 billion. He has seen many changes with this company, such as seeing it go to a publicly traded company on the New York Stock Exchange in 2000. Before joining Coach, Mr. Fr ankfort held eyeshots in the public sector in New York City.He holds a Bachelor of Arts full point from hunter College, and a MBA in Marketing from Columbia University. He also holds a spot on the Board of Overseers of Columbias Business School. Mr. Frankfort was recognized by Barrons from 2005-2008 as one of 30 roughly Respected CEOs globally. (Coach est. 1941, 2010) Having someone that has been in the similar company for 33 old age now running it, says wonders about Coach. Coach is a brand that sticks to what it knows and does not change something that is working for them. Just like their products, Coachs president is what they seek in their mission of keeping everything classic.Next, is Reed Krakoff, the President, Executive Creative Director of Coach and has been employed at Coach since December 1996. He was initially hired as the Vice President and Executive Creative Director, but advanced to his current position just two and a half years later. Mr. Krakoff has a degree i n personal manner Design from Parsons School of Design. Prior to Coach, Mr. Krakoff held various positions at Anne Klein, Ralph Lauren and other design houses. In 2007 Mr. Krakoff was elected vice president of the Council of Fashion Designers of America, and in 2001and 2004 he was awarded the honor of Accessories Designer of the Year. To this day Mr. Krakoff styles and photographs the campaigns for Coach. (Coach est. 1941, 2010) Having a man like Reed Krakoff on the Coach team ensures that they will have some of the most elegant designs in the industry today. His ability to create pieces that Coach would gladly put their name on ensures him a foresighted career at Coach.Following is Jerry Stritzke, the President and Chief operating(a) Officer as of March 2008. Prior to Coach he joined Best, Sharp, Sheridan, & Shritzke in 1985 as a partner. In 1992 he practiced law at Stritzke jurisprudence Office. From 1993 to 1999 Mr. Stritzke was a consultant for Webb and Shirley. Lastly, Mr. S tritzke held several senior executive positions within limited Brand Incorporation, from 1999 to 2007. Jerry Stritzke has a Bachelors of Science from Oklahoma State University and a Juris Doctor from the University of Oklahoma. (Coach est. 1941, 2010) Next is Michael Tucci the President, Retail Division in North America. Mr. Tucci joined Coach in 2003 with over twenty years of experience. Before Coach, he was the Executive Vice President of Gap Incorporated and held various senior leadership positions from 1994-2002.Michael Tucci also held executive positions at R.H. Mary Corporations from 1982-1992. Mr. Tucci has a Bachelors of Arts in English from Trinity College. (Coach est. 1941, 2010) Next, is Todd Kahn the Executive Vice President, General Counsel and Secretary since he joined Coach in 2008. Prior to joining Coach Todd Kahn held multiple positions for Calypso Christian Celle, Sean John, Accessory Network, InternetCash Corporation, Salant Corporation, Fried, Frank, Harris, Shri ver, and Jacobson. Mr. Todd has a Bachelors of Science from Touro College and a Juris Doctor from Boston University Law School. He also serves on the board of Directors of the Fashion Institute of engineering science Educational Foundation the Fashion Delivers Charitable Foundation Incorporated, and the National becomes Day Committee. (Coach est. 1941, 2010)Next is Sarah Dunn the Executive Vice President, kind Recourses since 2008. Previously Ms. Dunn held several executive positions with Thomson Financial, including Executive Vice President, Human Resources and organizational Development. Ms. Dunn is also a consulting Advisory Board member of Youth, I.N.C. She also has a Bachelors of Science grade in Human Sciences from University College, London, U.K. and a Masters Degree in Information Science from City University, London. (Coach est. 1941, 2010)Lastly, we have Jane Nielsen the executive Vice President and Chief Financial Officer since 2011. Jane Nielsen joined Coach after w orking at PepsiCo, Incorporated and the Global Nutrition multitude as their Senior Vice President and Chief Financial Officer since 2009. Prior to this Ms. Nielsen held senior positions in a financial role with PepsiCo, Incorporated, and Pepsi Bottling sort from 1996-2009. From 1990-1996 Ms. Nielsen worked for Marakon Associates and from 1986-1990 she worked at Credit Suisse First Boston. Ms. Nielsen has a BA in political economy from Smith College and an M.B.A. from Harvard Business School. (Coach est. 1941, 2010)Coach has recently been awarded $257 million in a lawsuit against counterfeit Coach merchandise. Coach obtained a remissness judgment in Illinois Federal Court against individuals and businesses that operate websites selling counterfeit Coach merchandise. The judgment granted Coach 573 internet domain call from which the counterfeit merchandise was sold from. Coach started a litigation campaign called Operation Turnlock in May 2009. Since then, Coach has filed lawsuits to stop counterfeit items from being sold. From these lawsuits, Coach has gain a significant amount of monetary value from them. (Chaudhuri , 2012)Coach also just donated $2 million to the Hurricane Sandy repose efforts. The gift was made to the sanguine Cross Disaster Relief Fund for rebuilding efforts in the Tri-State area. Coach as also made its employee matching program available, so however much its employees contribute to the American Red Cross Disaster Relief Fund or to other do funds, Coach will match the donation Lew Frankfort made a public address saying Our hearts go out to the uncounted number of people affected by the storm. Since Coach was established in Manhattan, they feel they need to help rebuild their community where they started. (Coach est. 1941, 2010)In 2011 Coachs Inventory broke down to 63% handbags, 27% accessories, and 10% all other products. This is just a little change from the antecedent year, where the only difference is 1% moved from accessories to all other products. Currently Coach pays rumply funds dividends of $0.225 per share. Coachs bullion flow statement shows Net Income for 2011 to be $880,800,000 and the net gold flows provided by operating activities in 2011to be $1,033,271,000. Also, the interchange flow statement shows the net cash used in investment funds activities to be -$59,631,000 and the net cash used in financing activities to be -$875,126,000 in 2011. For the Cash and cash equivalents at end of year 2011 were $699,782,000 with the cash paid for income taxes for 2011 to be $364,493,000 and cash paid for interest for 2011 to be $1,233,000. Lastly, the cash flow statement has for 2011 is the noncash investing activity-property and equipment obligations to be $23,173,000 and $0 for the noncash financing activity-mortgage debt assumed.(http//www.annualreports.com/company/2246 , 2011)Coach just inform its first quarter earnings per share in 2012 to be $0.77. Compared to the previous year, same quarter, the earnings per shares was $0.73. Their sales reported for 2012 first quarter, which ended family line 29, 2012, was $1.16 billion. Compared to the previous year where Coachs sales for the same quarter was only $1.05 billion. This is an 11% increase in sales in just one year. Coach also announced that its Board of Directors has just permit the repurchase of up to $1.5 billion of its outstanding common telephone circuit by June 30,2015. This will make Coachs earnings per share increase since there will be less outstanding stock. Since we now know the earning per share for Coach we can calculate the price earnings ratio. Coachs current stock price $57.87. So, Coachs price earnings ratio is 75.156. (Coach est. 1941, 2010)Stockholders equity is sum of money assets minus check liabilities. For Coach, in 2011 the total assets are $2,635,116,000 and the total liabilities are $1,022,547,000. So, the total stockholders equity for the year ended July 2, 2011 is $1,612,569,000. For the t otal liabilities of Coach being $1,022,547,000 only $593,017,000 are current liabilities. Of the current liabilities $118,612,000 is accounts payable, $473,610,000 is accrued liabilities, and $795,000 is current portion of the long term debt. As for the rest of the liabilities $23,360,000 is long term debt and $406,170,000 is other liabilities. (Coach est. 1941, 2010)These numbers first mean that Coach is a continuously growing company that would be labeled at a value company. Which means it doesnt grow fast, but instead it grows consistently. Also, since its assets and equities make up the majority of Coachs finances the company appears to be in good standings. Coach is a company that has been roughly for over 70 years and has been traded publicly for 12 years now, and it seems to have all its finances in order and look like what you would require for a high-end retail company. There is a bright future for Coach with its experienced executives leading the company to expand its m arket and try to work out out the competition.The volatility of Coach stock price is reasonable. Obviously people are willing to pay for Coach products even through firm times. Coachs stock price continues to go up and from last(prenominal) records it has always steadily increased. Coach has a rich history and has been around for a long time so I do not see it crashing anytime in the near future, so I would say the stock price is valid and a good steady long term investment.ReferencesCoach est. 1941. (2010, February 3). Retrieved from http//www.coach.com/online/handbags/Home-10551-10051-en?isCollapse=true Reuters Profile, coach inc.. (2012). Retrieved from http//www.reuters.com/finance/stocks/companyProfile?symbol=COH Yahoo finance. (2012). Retrieved from http//finance.yahoo.com/q/co?s=COH Competitors Chaudhuri , S. (2012, November 02). Coach gets $257 million, 573 domain names in counterfeiting lawsuits. Dow Jones Newswires. Retrieved from http//www.foxbusiness.com/news/2012/11/ 02/coach-gets-257-million-573-domain-names-in-counterfeiting-lawsuit/ http//www.annualreports.com/company/2246. (2011).