Canaccord Genuity Morning Coffee on Coach (COH) and Michael Kors Holdings (KORS): Bagged
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Price: $39.90 --0%
Rating Summary:
18 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
18 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Coach (NYSE: COH) and Michael Kors Holdings (NYSE: KORS): Bagged.
Yesterday, shares of luxury retailers fell after British-based Burberry issued a profit warning for its current fiscal year. It expects profit to come in at the low end of market expectations and management also said that sales have decelerated in recent weeks. Seeking Alpha notes that while some of Burberry’s struggles have been pegged as “self-afflicted,” the company’s weakening sales in Europe and China could be considered alarming for high-end sellers. On top of the cautious outlook from Burberry, Coach was downgraded at Brean Murray, furthering the downward pressure on shares. The brokerage sees shares as fully valued and believes the company will struggle to meet tough comparative sales number in the coming months. While it was a tough day for Coach, Morgan Stanley (NYSE: MS)praised the firm for the way it is handling increased competition from Michael Kors. The brokerage said, “We view this similarly to the way Nike (NYSE: NKE) responded to the Under Armour (NYSE: UA) threat.” Pointing to the steps the company has taken to improve its image and strengthen its connection with customers as indicators the company is on the right track. They believe there is room for both Coach and Michael Kors to grow as the luxury retail business continues to expand.
Yesterday, shares of luxury retailers fell after British-based Burberry issued a profit warning for its current fiscal year. It expects profit to come in at the low end of market expectations and management also said that sales have decelerated in recent weeks. Seeking Alpha notes that while some of Burberry’s struggles have been pegged as “self-afflicted,” the company’s weakening sales in Europe and China could be considered alarming for high-end sellers. On top of the cautious outlook from Burberry, Coach was downgraded at Brean Murray, furthering the downward pressure on shares. The brokerage sees shares as fully valued and believes the company will struggle to meet tough comparative sales number in the coming months. While it was a tough day for Coach, Morgan Stanley (NYSE: MS)praised the firm for the way it is handling increased competition from Michael Kors. The brokerage said, “We view this similarly to the way Nike (NYSE: NKE) responded to the Under Armour (NYSE: UA) threat.” Pointing to the steps the company has taken to improve its image and strengthen its connection with customers as indicators the company is on the right track. They believe there is room for both Coach and Michael Kors to grow as the luxury retail business continues to expand.
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