By: Jennifer Spinka

 Coach was founded in 1941 as a family-run workshop in a Manhattan loft.  Coach, Inc. designs and markets accessories and gifts for women and men in the United States and internationally. It primarily offers handbags, women's and men's bag, accessories, business cases, footwear, wearable's, jewelry, sun wear, travel bags, watches, and fragrance products.

 Price: $64.26  52 Week Range: $ $69.20  Market Cap: $18.62B  Dividend rate: $.225  Fair Value: $55.00  P/E:  P/S: 4.70  P/B:11.5  EPS: (3 year average):10.40  ROE: 35.36%  Beta: 1.71

 The company is one of the best recognized leather goods brands in the U.S  Known for product quality and durability and its commitment to customer service  Brand loyalty  Global vision in place, Coach is available at over 970 department store locations in the US 211 international department stores, retail store and duty free shop locations in over 20 countries 169 department store shop-in-shops and retail and factory store locations operated by Coach Japan, Inc

 Weak inventory turnover rates  Men’s accessories, outerwear and luggage combined only account for 7% of sales  Factory outlet stores are outperforming full- priced

 Increased wealth of consumers in the Asian, Middle East, Australia, and Mexican Markets.  International Expansion

 Strong competition from French and Italian designers such as Gucci, Prada, & Louis Vuitton  Counterfeiting of luxury merchandise Predicted that 500 billion worth of designer merchandise was sold in 2006  Impacted by the economic down turn

 Total Number of Analysts: 29 Buy:8 Outperform:13 Hold:8 Underperform:0 Sell:0

Criteria Requirements:CompanyIndustryDoes it match our Criteria? Solvency and Financial Leverage Ratios: Current Ratio > Yes Debt Ratio < Industry Average 1.33 Efficiency Ratios: Total Asset Turnover > Industry Average yes Inventory Turnover > Industry Average no Profitability Ratios: Net Profit Margin > Industry Average yes Return on Asset (ROA) > Industry Average yes Return on Equity (ROE) > Industry Average yes Growth Ratio (5 years): Historical EPS Growth > Industry Average yes Historical Revenue Growth > Industry Average 8.54 Projected EPS Growth >10%* and > industry Average Other Informative Data: P/E P/B PEG Fair Value Estimate Over valued Current Price (10/17/2011) Dividend.225

 Set a buying price between $ $58.00 buy 40 shares (costing between $ $2320)  Reasons: They are a good long-term stable company, they have been around for 70 years They are continuing to expand into growing markets such as China and plan to opened 25 They have little debt on their balance sheet and are able to turn 20% of sales into free cash flow for continued expansion They have been increasing their dividends over the past 3 years and are predicted to continue. The major highlights of the most recent three-month period were impressive performance in Coach’s North American and Chinese businesses along with a strong double digit increase in internet sales