Canaccord Genuity Morning Coffee on Coach (COH): I Make Bags!
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Price: $39.90 --0%
Rating Summary:
19 Buy, 20 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
19 Buy, 20 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Canaccord Genuity Morning Coffee on Coach (NYSE: COH): I make bags!
Yesterday, shares of Coach slid (but rebounding 1.2% this morning) after the luxury bag maker reported its Q3 results. Earnings in the quarter came in at $0.77 per share, $0.02 ahead of consensus and Canaccord Genuity Consumer Product Analyst Laura Champine’s estimate. Same store sales in China increased by double-digits for the 11th consecutive quarter and sales through the indirect channel came in higher than Champine was expecting. However, all eyes were focused on North American sales, which increased by 6.7%, 30 bps below Champine’s estimate and below the 8.8% growth seen last quarter. Most of the weakness was attributed to its pricing strategy at its factory stores, where it eliminated in store coupons. CEO Lew Frankfort commented, “The reality is that we could’ve driven higher comps if we wanted to. But we have very strong long-term view.” Management anticipates that sales in China will hit the $300 million mark by the end of 2012 and will continue to look at growing its men’s line, having it in 100 stare by the end of the year, up from 42 at the end of Q3.
To see more ratings on COH, Click Here
Yesterday, shares of Coach slid (but rebounding 1.2% this morning) after the luxury bag maker reported its Q3 results. Earnings in the quarter came in at $0.77 per share, $0.02 ahead of consensus and Canaccord Genuity Consumer Product Analyst Laura Champine’s estimate. Same store sales in China increased by double-digits for the 11th consecutive quarter and sales through the indirect channel came in higher than Champine was expecting. However, all eyes were focused on North American sales, which increased by 6.7%, 30 bps below Champine’s estimate and below the 8.8% growth seen last quarter. Most of the weakness was attributed to its pricing strategy at its factory stores, where it eliminated in store coupons. CEO Lew Frankfort commented, “The reality is that we could’ve driven higher comps if we wanted to. But we have very strong long-term view.” Management anticipates that sales in China will hit the $300 million mark by the end of 2012 and will continue to look at growing its men’s line, having it in 100 stare by the end of the year, up from 42 at the end of Q3.
To see more ratings on COH, Click Here
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