Travelers Shares Lower While Coach Surge After Earnings Reports

The Travelers Companies Inc. (AMEX:TRV) reported its results for the fourth quarter. Net income for the property and casualty insurance company fell to $618 million ($1.51 per share) vs. $894 million ($1.95 per share) a year earlier. This is a decline of 30.9% from the year earlier quarter. Revenue rose 0.6% to $6.37 billion from the year earlier quarter. TRV fell in line with the mean analyst estimate of $1.51 per share. It beat the average revenue estimate of $5.47 billion.

“We posted solid results in the quarter, generating net income of $618 million and a return on equity of 10%,” commented Jay Fishman, Chairman and Chief Executive Officer, “In light of the fact that 2011 was the costliest catastrophe year on record for the insurance industry on a global basis, we are pleased that the strength of our businesses enabled us to generate net income of $1.4 billion and to grow book value per share by 7%.”

Competitors to Watch: American Financial Group (NYSE:AFG), White Mountains Insurance Group, Ltd. (NYSE:WTM), RLI Corp. (NYSE:RLI), The Chubb Corporation (NYSE:CB), W.R. Berkley Corporation (NYSE:WRB), CNA Financial Corporation (NYSE:CNA), XL Group plc (NYSE:XL), HCC Insurance Hldgs., Inc. (NYSE:HCC), and Markel Corporation (NYSE:MKL).

Coach Inc. (NYSE:COH) reported its results for the second quarter. Net income for Coach Inc. rose to $347.5 million ($1.18 per share) vs. $303.4 million ($1 per share) in the same quarter a year earlier. This marks a rise of 14.5% from the year earlier quarter. Revenue rose 14.6% to $1.45 billion from the year earlier quarter. COH beat the mean analyst estimate of $1.15 per share. Analysts were expecting revenue of $1.43 billion.

Lew Frankfort, Chairman and Chief Executive Officer of Coach, Inc., said, “We’re very pleased with the strong sales and earnings growth we achieved once again this holiday quarter. Our performance reflected the strength of our franchise, our broad and diversified product platform and our multichannel, international distribution model.”

Competitors to Watch: Frederick’s of Hollywood Group Inc. (AMEX:FOH), Vera Bradley, Inc. (NASDAQ:VRA), Fossil, Inc. (NASDAQ:FOSL), Tiffany & Co. (NYSE:TIF), Piquadro S.p.A. (NYSE:PQ), Liz Claiborne, Inc. (NYSE:LIZ), Guess?, Inc. (NYSE:GES), Polo Ralph Lauren Corp. (NYSE:RL).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com