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Nomura Sees Signs of Spring at Coach (COH)

March 3, 2015 10:08 AM EST
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Price: $39.90 --0%

Rating Summary:
    19 Buy, 20 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Coach (NYSE: COH) is lower early (-0.7%) despite some bullish commentary from Nomura Securities analyst Robert Drbul following meetings and discussions with Coach management, including Victor Luis, CEO, and Global Head of Investor Relations & Corporate Communications, Andrea Shaw Resnick. The analyst sees signs of spring.

"We continue to believe the Coach brand transformation is progressing according to plan and remain encouraged by the initial results," Drbul said. "The company continues to execute its remodel and re-platforming initiatives, with 20 stores currently under the new format. Importantly, the 13 new stores in the Modern Luxury Concept comped positively in 2Q15 and the above-$400 price bucket increased to 30% of handbag sales from 20% last year. Plans for 2H15 include an additional 137 remodels, bringing the total to 150 remodel projects. Also, in addition to the seven new stores opened in the MLC, 2H15 plans include an additional 45 new stores, bringing the total to 50-60 new locations. The company will also be adding 40 new locations in department stores, adding ~4% square footage growth."

The firm reiterated a Buy rating and price target of $48.00 on COH.

For an analyst ratings summary and ratings history on Coach click here. For more ratings news on Coach click here.

Shares of Coach closed at $43.56 yesterday.



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