Top 5 Retail Companies To Own For 2015

Top 5 Retail Companies To Own For 2015: Coach Inc (COH)

Coach, Inc. (Coach), incorporated in June 2000, is a marketer of fine accessories and gifts for women and men. Coach's product offerings include women's and men's bag, accessories, business cases, footwear, wearables, jewelry, sunwear, travel bags, watches and fragrance. The Company operates in two segments: Direct-to-Consumer and Indirect. Accessories include women's and men's small leather goods, novelty accessories and women's and men's belts. Women's small leather goods, which coordinate with its handbags, include money pieces, wristlets, and cosmetic cases. Men's small leather goods consist primarily of wallets and card cases. Novelty accessories include time management and electronic accessories. Key rings and charms are also included in this category. Men's handbag collections include business cases, computer bags, messenger-style bags and totes. Footwear is distributed through select Coach retail stores, coach.com and about 1,000 United States d epartment stores. Wearables category is comprised of jackets, sweaters, gloves, hats and scarves, including both cold weather and fashion.

The Company's Jewelry category is comprised of bangle bracelets, necklaces, rings and earrings offered in both sterling silver and non-precious metals. Marchon Eyewear, Inc. (Marchon) is the Coach's eyewear licensee. Coach sunglasses are sold in Coach retail stores and coach.com, department stores, select sunglass retailers and optical retailers in major markets. The travel collections are comprised of luggage and related accessories, such as travel kits and valet trays. Movado Group, Inc. (Movado) is the Company's watch licensee, which develops a collection of watches.

Estee Lauder Companies Inc. (Estee Lauder), through its subsidiary, Aramis Inc., is Coach's fragrance licensee. Fragrance is distributed throug! h Coach retail stores, coach.com and about 4,000 United States department stores and 500 intern ational locations. Coach offers four women's fragrance col! lections and one men's fragrance. The women's fragrance collections include eau de perfume spray, eau de toilette spray, purse spray, body lotion and body splashes.

Direct-to-Consumer Segment

The Direct-to-Consumer segment consists of channels that provide the Company with immediate, controlled access to consumers: Coach-operated stores in North America; Japan; Hong Kong, Macau, and mainland China, Taiwan, Singapore and the Internet. This segment represented approximately 89% of Coach's total net sales during the fiscal year ended June 30, 2012 (fiscal 2012), with North American stores and the Internet, Coach Japan and Coach China contributing approximately 63%, 18% and 6% of total net sales, respectively. Coach stores are located in regional shopping centers and metropolitan areas throughout the United States and Canada. The retail stores carry an assortment of products. Its stores are located in locations, such as New York, Chicago, San Fra ncisco and Toronto.

Coach's factory stores serve as a means to sell manufactured-for-factory-store product, including factory exclusives, as well as discontinued and irregular inventory outside the retail channel. These stores operate under the Coach Factory name. Coach's factory store design, visual presentations and customer service levels support. Coach views its Website as a key communications vehicle for the brand to promote traffic in Coach retail stores and department store locations. Its online store provides a showcase environment where consumers can browse through a selected offering of the latest styles and colors.

Coach Japan operates department store shop-in-shop locations and freestanding flagship, retail and factory stores, as well as an e-commerce Website. Flagship stores offer an assortment of Coach products that are located in ! select sh! opping districts throughout Japan. Coach China operates department store shop-in-shop locatio ns, as well as freestanding flagship, retail and factory sto! res. Flag! ship stores, which offer an assortment of Coach products, are located in select shopping districts throughout Hong Kong and mainland China. Coach Singapore and Taiwan operate department store shop-in-shop locations as well as freestanding flagship, retail and factory stores. Flagship stores, which offer a range of assortment of Coach products, are located in select shopping districts in Singapore and Taiwan.

The Reed Krakoff brand represents New American luxury primarily for handbags, accessories and ready-to-wear. Reed Krakoff operates department store shop-in-shop locations, freestanding flagship stores, as well as an e-commerce Website at reedkrakoff.com. Flagship stores, which offer an assortment of Reed Krakoff products, are located in select shopping districts in the United States and Japan.

Indirect Segment

The Indirect segment represented approximately 11% of total net sales in fiscal 2012, with United States Wholesale and Coach International representing approximately 6% and 4% of total net sales, respectively. The Indirect segment also includes royalties earned on licensed product. U.S. Wholesale channel offers access to Coach products to consumers who prefer shopping at department stores. Coach products are also available on macys.com, dillards.com, bloomingdales.com, lordandtaylor.com, belk.com, vonmaur.com and nordstrom.com. Coach's products are sold in approximately 990 wholesale locations in the United States and Canada Its U.S. wholesale customers are Macy's (including Bloomingdale's), Dillard's, Nordstrom, Lord & Taylor, Carson's and Saks Fifth Avenue.

Coach International channel represents sales to international wholesale distributors and authorized retailers. Coach has developed relationships with a select group of distributors who sell Coach products th! rough dep! artment stores and freestanding retail locations in over 20 countries. Coach's network of internatio nal distributors serves various markets: South Korea, US & T! erritorie! s, Taiwan, Malaysia, Hong Kong, Mexico, Saudi Arabia, Thailand, Japan, Australia, Singapore, UAE, France, China, Macau, Indonesia, Kuwait, Bahamas, Aruba, Vietnam, New Zealand, Bahrain, India and Brazil.

Advisors' Opinion:

• [By WWW.DAILYFINANCE.COM]

  Patrick T. Fallon/Bloomberg/Getty Images Plenty of stocks go up and down in any given week. The gainers inspire us to keep investing. The decliners keep greed in check while reminding us about the risks of the equity markets. Let's go over some of last week's best and worst performers. King Digital Entertainment (KING) -- Up 20 percent last week We're not playing "Candy Crush Saga" the way we used to, but some of King Digital's other mobile games are starting to show signs of life. Shares of the casual-gaming leader moved higher after it posted quarterly results. King Digital is no longer a one-trick pony. Gross bookings for non-"Candy Crush" games have soared 167 percent over the past year and now make up nearly half of King Digital's total gross bookings. The diversification is paying off. King Digital referred to App Annie data showing that its market share of worldwide revenue generated from casual games in the top 100 titles is 49 percent on iOS and 44 percent on Android. Whole Foods Market (WFM) -- Up 19 percent last week The country's leading organic grocer moved higher after posting better-than-expected quarterly results. Sales climbed 9 percent to $3.3 billion, fueled by expansion and a 3.1 percent uptick in comparable sales. Whole Foods Market's profit of 35 cents a share exceeded analyst estimates for the second quarter in a row. Things aren't perfect. Margins contracted once again with net income failing to grow as quickly as sales. Whole Foods is facing competition as mainstream grocers and discount department store chains stock ! up on che! aper organic food. However, with shares trading 19 percent lower so far this year -- even after last week's pop -- it's easy to see Whole Foods come through with a big move up on a refreshing earnings beat. Kate Spade (KATE) -- Up 12 percent last week The market for premium handbags has proven challenging for Coach (COH) over the past two years, but the same can't be said about smaller rival Kate Spade.

• [By Andrés Cardenal]

  Coach (NYSE: COH  ) , on the other hand, is clearly out of fashion. The handbags and accessories specialist is materially lagging the S&P 500 over the last five years, as sales are stagnating and the company is losing market share to competitor Michael Kors (NYSE: KORS  ) . Coach is betting on its renewed collection to turn the business around, so I will give management some time and see if has what it takes to reinvigorate the brand.

source from Top Stocks For 2015:http://www.topstocksblog.com/top-5-retail-companies-to-own-for-2015-3.html