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The BusinessWeek 50 Ranking

17

Coach

Few fashion brands have caught the updraft in luxury-goods spending as well as handbag maker Coach. Its 2004 profits soared 63%, on a 36% increase in sales. Shareholders were rewarded with a 40.1% return on the stock through Feb. 28. CEO Frankfort has carefully positioned New York-based Coach at the entry level of luxury, with average prices nearly half those of rivals like Louis Vuitton, Hermès, and Gucci. At same time, design head Reed Krakoff, 41, has expanded the brand's appeal by adding more fashionable and colorful bags and accessories. This has taken the brand far beyond the utilitarian purses it was once known for. Loyal customers are now shopping more frequently to buy bags for different occasions. Frankfort has elevated the brand further by concentrating growth in its own stores where it has complete control of its image, while cutting dependence on department stores. With more fashion comes more risk, but so far Coach has hit the mark.

Company Info

2004 RankNR
STOCK INFO COH
Market Value $10.6 BILLION
Total Return (1-yr.) 40.1%
(3-yr.) 345.5%
2004 sales $1.5 BILLION
Sales Growth(1-yr.) 36%
(3-yr.) 33.4%
Net income $325.8 MILLION
Net Income Growth (1-yr.) 63%
(3-yr.) 65.0%
Net Margin* 21.3%
Return on Equity* 33.0%
Industry CONSUMER DURABLES & APPAREL
CORPORATE WEB SITE
More in S&P 500 Companies Scoreboard >
*Trailing 12 months
Company data as of 2/28/05 provided by Standard & Poor's Compustat

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Company Snapshot

Coach, Inc. engages in the design and marketing of American classic accessories in the United States and worldwide. Its primary product offerings include handbags, women’s and men’s small leather goods, business cases, weekend and travel accessories, outerwear, and related accessories. The company also offers watches, footwear, eyewear, and office furniture with the Coach brand name. Coach’s products are sold through direct to consumer channels, including North American retail stores; North American factory stores; the Internet; and the Coach catalog. As of July 3, 2004, Coach operated 174 retail and 76 factory leased stores in North America; and 100 department store shop-in-shops, and retail and factory stores in Japan. Coach was founded in 1941 and is headquartered in New York City.

No. of Employees

4,200


Data provided by Capital IQ
Lew Frankfort

Lew Frankfort, 59

Titles

Chairman and Chief Executive Officer

CEO Bio >

Total Compensation*

$5.2 MILLION

Total Value of Options**

$138.9 MILLION

Compare CEO Compensation >

Degrees Held

Columbia University NYC (MBA), City University of New York at Hunter College (BA)

Board memberships

Coach Inc.

* Latest available fiscal year
** The sum of the net value of options exercised and held in the latest available fiscal year

Key Executives

Lew Frankfort, Keith Monda, Reed Krakoff, Michael Tucci, Mike Devine, Carole Sadler, Felice Schulaner

Board Members

Lew Frankfort, Keith Monda, Joseph Ellis, Michael E. Murphy, Irene Miller, Gary W. Loveman, Sally Frame Kasaks, Ivan Menezes


Data provided by Capital IQ
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