5 Reasons To Buy Shares Of Coach

5 Reasons To Buy Shares Of Coach



Luxury handbag maker Coach (COH) has long been a favorite of growth investors. Even in tough economic times, the luxury company expanded sales with strong overseas growth and entries into new markets. Here are six reasons why shares of Coach look like a buy at the moment.



Shoes



Despite being a leader in the handbag market, Coach hasn't decided to stop there.This elegant selection of cheapchaneljewellery will have you looking stunning for the big day! Coach is taking on rivals Michael Kors (KORS) and Tory Burch in the competitive shoes market. In March, the company began a new line of shoes at 170 North American locations. In the second half of the year, that line will expand to more stores. The new shoes are produced by Jimlar Corporation.



Based on current sales and trends, the footwear category is expected to hit $250 million for the fiscal year ending June 30. Coach is also considering moving the footwear category to its factory outlets as well. Analysts are mixed about the move into shoes. Bearish cases argue that Coach's amazing margins may be hurt. Bullish analysts remind investors that the shoe market is a $23.5 billion industry and Coach can score big with even a small market share.



The entry into shoes is a good thing, considering handbag sales may be capping. In December, Coach lost market share of the North American handbag segment for the first time. In fiscal 2012, only 7% of sales came from categories outside of handbags and accessories. The growth of the shoe market should boost sales going forward and can offset any weakness in handbags or specific geographic regions.



Price-to-Earnings Ratio



Analysts on Yahoo Finance see Coach posting earnings per share of $3.73 in fiscal 2013. The following year, analysts see earnings per share climbing to $4.12. This currently gives Coach a price-to-earnings ratio of 15.6 and 14.1 on a current and forward basis. I think, with its strong near double-digit sales growth and increase into other business segments, shares should be trading closer to a valuation of 17 or 18 times earnings per share. This would give shares a price target of $74.16 for fiscal 2014, representing a share increase of 27% going forward.



Whether you've taken the plunge or are still deciding, there are a few things you should know about taking care of your Burberry Crush Bag.



While the heart print styles are cut from 90% calfskin and 10% calf leather,2013 Collection germanmilitaria 1672 Styles. the collection also features mink and alligator,Gucci handbags prides itself in always maintaining a design edge along with guccihandbags0 on sale from cheap Gucci handbags outlet. which aren't fabrics you'll want to mess with!



So straight from the mouths of Burberry handbag experts, here are a few points to note when showering all your love on the new Crush bag.Wonderful Gucci handbags collection: beachweddingdresses and discount Gucci handbags by Styledrops.



"Naturally, Burberry leather accessories are created to the highest standards of design and quality. The raw material components have been developed using unique tooling techniques and as such, are very delicate. So we'd recommend handling the Crush bag with great care.



"Pulling, snagging or excessive surface abrasion should be avoided, while it's worth bearing in mind that deep or bright colours could transfer onto light coloured garments.



"Care should be taken to keep the product away from extreme sources of heat, and even though most canvas Burberry bags are water resistant, you'd be wise to protect the Crush from the rain.A turquoisebeads is the most formal female attire for social occasions.



"If the bag does get wet however, allow it to dry naturally away from direct heat. Any cleaning should be carried out with extreme care using a damp cloth.



"When not in use, we'd recommend storing the product in the felt Burberry pouch provided."



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