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Coach has created an 'Amazon-proofed' brand, analyst says

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Shoppers pass a Coach display in Macy's, New York.
Scott Mlyn | CNBC

MKM initiated a buy rating of Coach, with analyst Roxanne Meyer calling the stock "a growth story gaining momentum."

"In our view, COH is a largely unprecedented brand transformation that reflects the strength of management, ability to execute, and the power of innovation," Meyer wrote in Tuesday's note. "Its success is due to its courage to shrink sales in the public eye in order to grow, and the strategic decision to elevate the brand through product, store environment, and emotional marketing, creating a more 'Amazon-proofed' brand."

Despite widespread declines across retail following Amazon's recent acquisitions, Coach is easily beating the market. As of Tuesday afternoon, Coach was ahead of the S&P 500 by more than 26 percentage points year to date.

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