Coach Earnings: Here’s Why Investors are Selling Shares Now

Coach Inc. (NYSE:COH) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 9.66%.

Coach Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.49% to $0.89 in the quarter versus EPS of $0.86 in the year-earlier quarter.

Revenue: Rose 5.84% to $1.22 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Coach Inc. reported adjusted EPS income of $0.89 per share. By that measure, the company missed the mean analyst estimate of $0.89. It missed the average revenue estimate of $1.24 billion.

Quoting Management: Lew Frankfort, Chairman and Chief Executive Officer of Coach, Inc. said, “During the fourth quarter we approached double-digit growth in constant currency and continued to gain overall traction on our key strategies supporting our brand transformation. We generated strong international results, leveraged the Men’s opportunity globally, strengthened our digital capabilities and drove excellent initial results in the re-launch of footwear. While we maintained our outstanding profitability levels, we were not satisfied with our performance in the Women’s handbag and accessories category in North America.”

Key Stats (on next page)…

Revenue increased 2.96% from $1.19 billion in the previous quarter. EPS increased 5.95% from $0.84 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.85 and has not changed. For the current year, the average estimate is a profit of $3.73, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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