Companies and Brands
Coach Gets Crushed After Calling 2013 an "Investment Year"
Published:
Last Updated:
Coach Inc. (NYSE: COH) is getting pounded after its disappointing quarterly earnings of $0.86 per share and $1.16 billion in revenue. The results compare to the Thomson Reuters consensus estimates of $0.85 per share and $1.2 billion revenue. The luxury and upscale accessories company also spent some $169 million to repurchase about 2.5 million shares in the quarter. Gross margin improved to 72.6% from 71.8% in the quarter.
The company is not exactly talking up its outlook as it calls fiscal 2013 an investment year that will result in modest deleveraging. The company is committing to double-digit growth on the top line and bottom line results over the planning horizon.
A key issue is the direct-to-consumer sales as it now includes Taiwan and Singapore, and that rose by 13% to $1.05 billion. Same-store sales rose by about 1.7% in North America, and sales were up 16% in Japan. Sales in China were 60% higher. Indirect sales were flat at $108 million.
Shares of Coach closed at $60.58 on Monday, but shares are down 16% at $50.85 against a 52-week range of $45.70 to $79.70.
Bloomberg was reporting last Friday that put options were trading at the highest premium in quite some time for Coach. Now we know why.
JON C. OGG
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
