Zacks Investment Research downgraded
) to a Zacks Rank #5 (Strong Sell) on Jan 29, 2013.
Why the Downgrade?
Coach witnessed a sharp downward revision in estimates after
posting lower-than-expected second-quarter fiscal 2013 results on
Jan 23, 2013.
The quarterly earnings of $1.23 per share fell short of the
Zacks Consensus Estimate of $1.29 but rose from $1.18 earned in
the prior-year quarter.
Management cited that the challenging macroeconomic conditions
and intense promotional strategies undertaken by competitors in
the women's handbag category muted the company's performance in
North America. However, international results remained a bright
spot in the quarter.
Coach said that net sales for the quarter came in at $1,503.8
million, up 4% from the year-ago quarter but came below the Zacks
Consensus Estimate of $1,605 million. We also remain concerned
about erratic consumer behavior and soft economic recovery.
The Zacks Consensus Estimates for the third and fourth
quarters of fiscal 2013 dropped 3.5% and 4.2%, to 83 cents and 92
cents per share, respectively, over the past 7 days. Moreover,
for fiscal 2013 and 2014, the Zacks Consensus Estimates fell by
2.6% and 4.7% to $3.78 and $4.24 per share, respectively, over
the same time frame.
Other Stocks to Consider
Not all textile, apparel store chains are performing as
disappointingly as Coach.
G-III Apparel Group, Ltd.
) and Hanesbrands Inc. (
hold a Zacks Rank #1 (Strong Buy), and are expected to continue
with their upbeat performances in the coming quarters. Another
stock that should be merited is
Gildan Activewear Inc.
, which holds a Zacks Rank #2 (Buy) and looks promising.
COACH INC (COH): Free Stock Analysis Report
G-III APPAREL (GIII): Free Stock Analysis
GILDAN ACTVWEAR (GIL): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
To read this article on Zacks.com click here.