Why You Shouldn’t Panic Over Coach, Inc. (COH)’s Plunge

Shareholder-friendly history
Finally, remember that Coach, Inc. (NYSE:COH) has a history of rewarding shareholders for their patience through dividends and share repurchases.

Curiously enough, though Coach hasn’t repurchased any shares for the past two quarters, in the first half of its 2013 fiscal year the company spent around $400 million to buy back more than 7 million shares of common stock at an average cost of $56.61. That said, Coach, Inc. (NYSE:COH) still has around $1.4 billion remaining under its current  $1.5 billion repurchase authorization, which expires in June 2015, leaving it primed to take advantage of its faltering stock price.

Before that, Coach, Inc. (NYSE:COH) completely exhausted the previous $1.5 billion repurchase authorization originally announced at the beginning of 2011.

What’s more, Coach has more than tripled its dividend after raising it four times in as many years since 2009. At today’s prices, then, patient investors can enjoy a solid 2.3% yield.

Foolish takeaway
In the end, while this certainly isn’t an exhaustive list, these three things offer a great place to start in understanding why I’m simply not convinced one of the world’s most profitable, iconic fashion brands won’t eventually come out on top.

The article 3 Reasons You Shouldn’t Panic Over Coach’s Plunge originally appeared on Fool.com.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Coach. The Motley Fool owns shares of Coach.

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