Michael Kors Holdings Ltd (KORS): Is Coach, Inc. (COH) Destined for Greatness?

Coach has been facing strong competition in the North American market since smaller retailers like Michael Kors Holdings Ltd (NYSE:KORS) and Tory Burch have been clambering for the same slice of the consumer pie. Coach and Michael Kors Holdings Ltd (NYSE:KORS) are both going after new opportunities in international markets, particularly in big-spending Asian population centers. Coach’s Chinese sales were up 35%, with year-over-year same-store sales up by double digits in the region, and Japan accounts for more than 50% of Coach’s total international revenues. On the other hand, Michael Kors Holdings Ltd (NYSE:KORS)’ non-American and European sales spiked by 96% over a similar time frame, with a gain of roughly 25% in same-store sales.

Fool contributor JP Bennett notes that Coach can continue to leverage its online sales platform, which has produced consistent double-digit growth over the past few quarters. The company also has plans to open 30 new stores in China by the end of this year, which will certainly boost international revenue above its current 34% share of Coach’s total sales.

Putting the pieces together
Today, Coach, Inc. (NYSE:COH) has many of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Coach Destined for Greatness? originally appeared on Fool.com and is written by Alex Planes.

Fool contributor Alex Planes has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Coach.

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