New Flagship Store the Latest Step in Coach Turnaround

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In its 75th anniversary year, Coach Inc. (NYSE: COH) has just announced the opening of its newest flagship store, Coach House, on Fifth Avenue in New York City, one of the world’s most prestigious shopping districts.

Coach CEO Victor Luis said:

With Coach House, we are celebrating our New York heritage and 75-year history of craftsmanship. The flagship features the full expression of our women’s and men’s collections including bags, small leather goods, footwear, and ready-to-wear, in addition to offering a full range of customization and leather services. Together with the opening of the adjacent Stuart Weitzman flagship store, we are bringing two global brands born in New York City to one iconic location.

The new store will include a resident master craftsman offering expanded leather and craftsmanship services, such as special monogramming. It will also offer the Made to Order Rogue, which allows customers to create a bespoke Rogue bag.

Coach is a leading New York design house of modern luxury accessories and lifestyle brands. The Coach brand was established in New York City in 1941 and has a rich heritage of pairing exceptional leathers and materials with innovative design.

Coach products are sold worldwide through Coach stores, select department stores and specialty stores, and through company’s website. In 2015, Coach acquired Stuart Weitzman, a global leader in designer footwear, sold in more than 70 countries.

The stock was a favorite for years before getting absolutely hammered in 2015. When Coach recently released its fiscal first-quarter earnings report, results on both the top and bottom lines were essentially in line with expectations and flat with a year ago. International Coach brand sales rose 7%, but North American Coach brand sales decreased 3%. The company continues to project double-digit growth in both net income and earnings per diluted share for the year. Luis said at the time:

We remained focused on elevating the perception of the Coach brand through compelling product, differentiated store environments and emotional marketing.

Coach shares are up 27% from a year ago and closed Wednesday at $37.62, in a 52-week range of $29.33 to $43.71. The consensus target price is $43.40.