Coach Incorporated Security Analysis Paper Essay

Abstract bus incorporated is a companion established in 1941in Manhattan. bus topology is in the fashion sedulousness and this accessories maker is one of the best known steels in North America. managing director was bought step up by the Sara Lee green goddess in 1985 and started being exotericly traded in 2000 on the unused York Stock Exchange. bearing Incorporated prides it selves rancid of being one of the most dependable, unique, desirable, and fashionable brands in their industry. jalopy has a disadvantage with its competition, being the lone(prenominal) one publicly traded. It does not submit access to the others financial records. school Incorporated likes to stick to tradition, whether it is in their designs or their administrator officers. tutor has a very diverse and experienced executive director team. perambulator to a fault solely started a litigation campaign in 2009 c both(a)ed Operation turnlock to try and help with the counterfeit problem. They w ere latterly award a large sum of money from one of the lawsuits the campaign filled for online counterfeit merchandise. carriage recently hardly gave $2 one million million to the Hurricane Sandy Relief Fund to help rebuild the partnership where animal trainer got its own start. cultivates financial records are in order and are reenforcement to grow steadily even through the rough economy.Coach Incorporated (Coach) is a community 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 start from each generation to create a unique style that became sort of 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 circumstancess. Their mission statement is Coach seeks to be the lead ing brand of quality lifestyle accessories offering classic, modern font American styling. In todays world, Coach is large company that still retains high standards and workmanship 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 manufacture 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 signature style and distinctive identity (Coach Est. 1941, 2010) that almost everyone can recognize, which is wherefore their prices reflect more of the name than the quality of the items. Coach is in the fashion industry and enough mess are willing to invent 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 mens as well. Their competition includes Louis Vuitton, Fendi, Gucci Incorperated, Dooney and Bourke Incorporated, Katie coon LLC, and Michael Kors Incorporated which are all privately owned companies. (Yahoo finance, 2012)Coach operates in two diametrical ways, direct to customers and indirect. Indirect is where Coach sells their products to other retail livestocks 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 in like manner 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 spec ialty 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 increase international distribution and target international consumers, especially in Asia. They also plan on staying one of the most popular 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 illusion and logic that stands for quality, authenticity, value and a truly aspirational, distinctive American style. (Coach est. 1941, 2010) They hold accountability to their customers. They also guarantee great service and that their customers affects are always met. Coach seeks long term relationships with all their costumers by treating th em this way. This is one reason Coach is still around 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 officers with only seven. First on the list is Lew capital of Kentucky the professorship and Chief Executive Officer. Mr. Frankfort joined the Coach company is 1979 as Vice prexy 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 one thousand million. 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. Frankfort held positions in the public sector in New York Cit y.He holds a Bachelor of Arts degree from Hunter College, and a MBA in Marketing from capital of South Carolina University. He also holds a spot on the Board of Overseers of Columbias Business direct. Mr. Frankfort was recognized by Barrons from 2005-2008 as one of 30 close to Respected CEOs globally. (Coach est. 1941, 2010) Having someone that has been in the like company for 33 long time 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. comely 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 hire 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 in fake Design from Parsons School of Design . old 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 long life at Coach.Following is Jerry Stritzke, the President and Chief Operating 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 Law Office. From 1993 to 1999 Mr. Stritzke was a consultant for Webb and Shirley. Lastly, Mr. Stritzke held several senior executive positions within limited Brand Incorporat ion, 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, habitual Counsel and Secretary since he joined Coach in 2008. Prior to joining Coach Todd Kahn held four-fold positions for Calypso Christian Celle, Sean John, Accessory Network, Internet money Corporation, Salant Corporation, Fried, Frank, Harris, Shriver, 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 Technology Educational Foundation the Fashion Delivers likable Foundation Incorporated, and the National Fathers Day Committee. (Coach est. 1941, 2010)Next is Sarah Dunn the Executive Vice President, valet de chambre 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 consultive Board member of Youth, I.N.C. She also has a Bachelors of Science Degree in Human Sciences from University College, London, U.K. and a get the hang 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 working at PepsiCo, Incorporated and the international Nutrition G roup 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 Group 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 Economics 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 default judgment in Illinois federal Court against individuals and businesses that operate websites selling counterfeit Coach merchandise. The judgment granted Coach 573 internet subject field name calling 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 laws uits, Coach has gain a significant mensuration of monetary value from them. (Chaudhuri , 2012)Coach also just donated $2 million to the Hurricane Sandy relief efforts. The salute was made to the release Cross Disaster Relief Fund for rebuilding efforts in the Tri-State area. Coach as also made its employee gibeing program available, so however much its employees contribute to the American Red Cross Disaster Relief Fund or to other qualified funds, Coach will match the donation Lew Frankfort made a public address saying Our hearts go out to the countless 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 previous year, where the only difference is 1% moved from accessories to all other products. Currently Coach pays quarte rly money dividends of $0.225 per share. Coachs cash flow statement shows Net Income for 2011 to be $880,800,000 and the net cash flows provided by operating activities in 2011to be $1,033,271,000. Also, the cash flow statement shows the net cash used in investing 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 use up 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 reported 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 firs t quarter, which ended September 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 authorized the repurchase of up to $1.5 billion of its outstanding common stock 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 fair-mindedness is total assets negative total 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 total 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 accrue 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 labelled 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 around 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 expect for a high-end retail company. There is a bright future for Coach with its experienced executives leading the company to expand its market and try to bet out the competition.The volatility of Coach stock price is reasonable. Obviously people are willing to pay for Coach products even through hard times. Coachs stock price continues to go up and from past 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/c ompany/2246. (2011).