Post Earnings, Coach Readies for the Holidays to Support Stock’s Surge

Aspirational luxury retailer Coach (NYSE:COH) carried its upward momentum last week as the company looks well positioned for another excellent holiday season. Earlier Coach had posted better-than-expected first-quarter 2012 results hinging on impressive performance in North America and China and now with with a meticulously laid down strategy for this holiday season, the company is all set for another great quarter. Coach is the leading American marketer of luxury lifestyle handbags and other fashion accessories and competes with premium apparel and accessories players like Polo Ralph Lauren’s (NYSE:RL), Liz Claiborne (NYSE:LIZ) and AnnTaylor (NYSE:ANN).

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Coach is well prepared for the holiday season

With the all important holiday season up next, Coach has prepped its strategy from the upgraded product portfolios to a powerful marketing campaign. In the handbags section, the company plans to update its Madison line of handbags, its core holiday offering. Along with Madison, the company has also brought Lindsey and Abigail, two of its high-end handbags line with a price range between $358-$898.

To support its latest collection, the company is bringing a marketing plan beginning  mid-November featuring a powerful gifting message. The campaign will span coach.com, social and rich media advertising and compelling print along with in-store marketing to drive traffic.

We have a revised price estimate of $68.20 for Coach stock, which is roughly 5% ahead the current market price.

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