Seeking Alpha

Coach sees weakness in North America

  • Coach (COH) reports sales fell during its FQ2 as it experienced weakness in its women bags and accessories business in North America.
  • Revenue breakdown: North America -9% to $983M; International +2% to $425M.
  • The retailer saw strong growth in China during the period with comparable sales growing at a double-digit clip during the period.
  • Gross margin as a percentage of sales fell 300 bps to 69.2% in FQ2.
  • COH -7.7% premarket
Comments (7)
  • Philip Saglimbeni
    , contributor
    Comments (483) | Send Message
     
    $COH proving yet again that it is no $KORS right now, the brand is stale currently compared to the latter . . .
    22 Jan, 08:04 AM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    totally agree. So glad I sold this value "trap" in the high 50s for a profit.

     

    Purses are fickle. KORS will be fine until the next big name comes out.
    22 Jan, 08:10 AM Reply Like
  • Philip Saglimbeni
    , contributor
    Comments (483) | Send Message
     
    Nice sell, I am very curious to see which brand comes out on top next to challenge KORS, there is always another one. Any clue on your part? I have none!
    22 Jan, 08:18 AM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    I have no clue either.... i just know probably anyone can make a purse, and as such, it doesn't pass my "moat" test. I was coaxed into investing in COH as a "value" play by a buddy. Luckily I sold out in time.
    22 Jan, 08:34 AM Reply Like
  • Philip Saglimbeni
    , contributor
    Comments (483) | Send Message
     
    I feel the same way about the moat. Is there a better moat than MA and V?! I do regret not getting in early on KORS but long-term there will be increasing competition and no real way to combat it, IMO. Let's see what today brings us with $FLT . . .
    22 Jan, 09:12 AM Reply Like
  • june1234
    , contributor
    Comments (2502) | Send Message
     
    COH gets 13% of its sales from Japan where the sales tax just went up from 5 to 8%, that didn't help. Have a feeling while everyone and their brother is shorting retail AMZN should continue to pick up the continued shift from brick and mortar to online . Those guys are slowly but surely obliterating the big box operations
    22 Jan, 09:34 AM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    WMT is doing fine. Everyone else, not so much
    22 Jan, 09:43 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|