Coach, Inc. (COH): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
Earnings estimates for Coach have shown a downtrend since the company reported second-quarter fiscal 2014 results. The company disappointed on the sales front that fell 6% after falling 1% during the first quarter due to sluggishness in the North American market, and also fell short of the Zacks Consensus Estimate. The bottom line also failed to impress, as earnings of $1.06 per share missed the Zacks' expectation of $1.11 and tumbled 13.8% from the prior-year quarter. The softness in results made the analysts less constructive on the stock's future performance. Further, a mature domestic market and difficult consumer spending environment remain causes of concern. Moreover, a weaker Yen, higher labor costs and inventory amortization would keep the margins under pressure. Considering the bearish aspects with which the company is grappling with, we are reiterating our Underperform recommendation.

Overview:

Founded in 1941 and headquartered in New York, Coach, Inc. (COH) is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The Company offers lifestyle products, which include handbags, women's and men's accessories, footwear, jewelry, wearables, business cases, sunwear, travel bags, fragrance and watches.

Beginning with the first quarter of fiscal 2013, Coach operates under two business segments North American and International.

North American segment includes sales to customers via North American company-owned stores, including the Internet, and sales to North American wholesale customers and distributors.

International segment includes sales to customers via company-owned outlets in Japan, including the Internet, mainland China, Hong Kong and Macau, Taiwan, Singapore, Korea and Malaysia, and sales to wholesale customers and distributors in over 20 countries. It also includes Internet sales in China.


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COACH INC (COH): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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