Coach Inc (COH) 2012 Review

Coach Inc (COH) designs, produces and markets high quality hand bags, business cases, luggage, leather outer wear and men’s and women’s accessories.

The company has grown profits 30%+ annually for the last ten years earnings a 40%+ return on equity. Its dividend has grown from $.08 in 2009 to an expected $1.12 in 2012. COH was not immune to the declines in consumer spending in 2007-2009; however, as the economy has improved, it has benefited from:

(1) improving comparable store sales and rising margins due to:

(a) product innovation,

(b) a market savvy pricing strategy,

(c) effective cost control program.

(2) continuing to expand geographically, especially in emerging markets