Wall Street Strategies upgraded COH from “hold” to a “buy” with a price target of $62 due to its performance in quarter 2 of FY 2011. Zacks reiterated a “neutral” rating on COH but increased their price target to $57 per share. UBS AG analysts increased their price target to $59 per share and also have a “neutral” rating.
COH reported quarterly net sales of 1.264 billion, which is an increase of 20% compared to the same quarter last year. It also reported $1.00 earnings per diluted share, which beat estimates of $0.97 per share.
During Q1 2010, Coach successfully launched its new collection, Poppy, aimed at younger female demographics. The new collection's success was mainly due to its competitive prices and well-received brand image through successful marketing.
Coach reported sales of $761 million during its first fiscal quarter ended September 26, 2009, an increase of 1% from the prior-year fiscal quarter. Net earnings were $141 million, which translates to an EPS of $0.44. Gross profit and operating income were down 1% and 4%, respectively.
Coach's 2nd quarter revenue and profits decreased by 2% and 14% respectively. In addition, the company announced it would cut prices by 10-15% in 2009.
Coach reported results for the first quarter of fiscal 2008, as revenue grew 11% in the quarter but still fell short of analyst expectations. Net profit fell 6% during the quarter, but beat analyst expectations. Coach plans to launch a number of new products in November for the holiday season to drive store traffic, particularly products with lower price points in response to economic conditions.
Coach reported net earnings per share of $0.50 for the fourth quarter of FY08, meeting analyst estimates. However, Coach's FY09 outlook forecasted first quarter FY09 EPS of $0.44, while analysts had been expecting a forecast of $0.48. Coach stated that it's lower forecast took precaution with the uncertainty of economic conditions in the United States.
Coach’s stock price fell as the company expects Q2 profit to miss analysts’ estimates even though it reported a 23 percent increase in Q1 profit. The net income of the company in Q1 was $154.8 million, compared to $125.6 million last year. However, the company reduced its Q2 estimates as it is affected by the decrease in consumer base in the U.S. The company expects an EPS of 68 cents, compared to analysts’ consensus of 70 cents per share.
Coach's shares have been on a general uptrend from a low of $25.58 hit on July 18, 2006 in the midst of summer investor pessimism concerning retail stocks that affected the sector as a whole. However, a decent macroeconomic environment as well as consistent and above-expectations performance by Coach has kept the company afloat and sailing upstream.
Coach’s shares drop from $48.89 to $46.07, a slide of 5.6% percent, amid a market-wide downturn due to concerns about cooling in the U.S. and Chinese economies. A dip in the Asian economies could hurt Coach’s expansion strategy there and a general macroeconomic slump in both areas could negatively affect sales at existing stores.
Coach's shares spiked from $35.27 at close on October 20 to $39.95 at close on October 25 in reaction to an announcement from the company in which the company raised its guidance on sales and EPS numbers for second half of FY 2007 and overall FY 2007.