Coach, Inc. (NYSE:COH) hopes to increase its global retail square footage by 10% in fiscal 2013, with a concentration on the U.S. and China. Internationally, the company plans to add 30 outlet stores in China, putting its total to over 120 locations. While in Japan, the company will also add 10 stores.
However, the key, underrated, growth opportunities lie in the “murse.” Okay, maybe Coach, Inc. (NYSE:COH) isn’t betting the house on man purses, but it is definitely betting that its men’s business will show strong growth over the interim.
The sale of men’s bags and accessories more than doubled in fiscal 2012, and the company sees this number rising another 50% in 2013. The retailer has over 85 men’s retail stores-in-a-store, 30 men’s standalone factory stores and five standalone men’s retail stores.
Watches
Fossil Group Inc (NASDAQ:FOSL) is known for its watches, but it also offers various accessories, including jewelry, sunglasses, small leather goods, belts, and handbags. In 2012, watches accounted for some 75% of sales.
Its key watches include its proprietary Fossil Group Inc (NASDAQ:FOSL), Relic and Skagen brands, and licensed Adidas, Armani Exchange, DKNY, Diesel, Marc by Marc Jacobs, and Michael Kors Holdings Ltd (NYSE:KORS) lines. Fossil Group Inc (NASDAQ:FOSL)’s most notable initiative of late was the 2012 acquisition of Skagen. The acquisition added nearly $100 million to sales in 2012.
Fossil Group Inc (NASDAQ:FOSL), like its accessory peers, is looking to break further into the international markets. Fossil Group Inc (NASDAQ:FOSL) acquired the Latin American distribution business of Florida-based Bentrani Watches in January, allowing the company to ship its products in 16 Latin American countries, including Chile, Argentina and Colombia.
Sales are expected to be up 11.5% in 2013, with the help of new products and the expansion of its retail locations. Its new products include Skagen jewelry and Fossil Swiss watches, while the company is expected to open 70 to 75 stores this year.
Bottom line
The three discretionary stocks listed above tend to hold up nicely regardless of the economic backdrop. I think all three will continue their upward momentum on the back of a rebounding economy. Both Tiffany and Coach, Inc. (NYSE:COH) also offer investors a well-covered dividend yield at 1.7% and 2.3%, respectively.
The article Why I Love Jewelry, Purses & Watches originally appeared on Fool.com.
Marshall Hargrave has no position in any stocks mentioned. The Motley Fool recommends Coach and Fossil. The Motley Fool owns shares of Coach and Fossil. Marshall is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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