Limited edition accessories will feature Mickey Mouse and are expected to be a positive growth driver for Coach
Coach Inc (NYSE:COH) is a luxury brand for fashion accessories originating from the United States. It deals in accessories for both men and women and features a wide variety of handbags, outerwear, innerwear, watches, jewelry, etc. The company was founded back in 1941 as a workshop in Manhattan by Mr. Dawn Hughes and its headquarters are now located in New York. The company’s management is headed by Mr. Victor Luis and Jane Nielsen serving the company as CEO and CFO respectively.
Coach has recently announced a partnership with Disney in order to produce a wide variety of accessories including hand bags. The collection will mostly feature leather accessories and is announced as a limited edition. Piper Jaffray analyst, Erinn Murphy sees the Disney x Coach 1941 partnership as a large positive for Coach and believes it will help Coach bring growth to it its comparable same store sales in the fourth quarter of FY16. Coach unveiled the collection in an event held on Friday June 10, in high end specialty boutiques, one of which is located in Paris, while, the other is situated in Soho, New York.
The limited edition products will be available for sale on all coach outlets and the company’s website, Coach.com, from June 17. This is the second time Coach has partnered with Disney for the production of cartoon themed accessories as they previously partnered towards the end of 2014 to produce Snoopy themed products. Ms. Murphy expects the collaboration to be a huge success which is supported by the fact that it received more than 13,700 likes in the first 24 hours on Instagram far outpacing the average of 7,200 likes on similar posts.
Piper Jaffray reiterated the overweight rating of the stock with a price target of $47.00. COH stock is covered by 37 analysts; out of which 5 rate the stock as a Strong Buy, 10 rate the stock as a Buy, two rate the stock as a Hold and two rate it as an Underperform.