Unique Balance Sheet Assets Make Coach An Attractive Buyout Target
Paul Goncalves, CFA
Paul Goncalves, CFA
Wed, Sep. 14, 7:25 AM
- Morgan Stanley downgrades Coach (NYSE:COH) to an Underweight rating after having the stock set at Equalweight.
- Analyst Kimberly Greenberger raises concerns over the sharp drop in merchandise margins at the luxury chain due to a high level of promotional activity in the outlet channel.
- The investment firm lowers its price target to $32 vs. the 52-week Coach trading range of $27.22 to $43.71.
- COH -2.37% premarket to $35.43.
Thu, Sep. 8, 7:13 AM
Tue, Sep. 6, 11:20 AM
- August monthly performance was: -0.6%
- 52-week performance vs. the S&P 500 is: +5%
- $0.21 in dividends were paid in August
- Top 10 Holdings as of 7/29/2016: ONEOK Inc (OKE): 2.51645%, Mattel Inc (MAT): 1.45532%, CenterPoint Energy Inc (CNP): 1.35453%, Frontier Communications Corp Class B (FTR): 1.23381%, Coach Inc (COH): 1.17484%, CMS Energy Corp (CMS): 0.92805%, Macquarie Infrastructure Corp (MIC): 0.92426%, SCANA Corp (SCG): 0.9029%, Microchip Technology Inc (MCHP): 0.82578%, The AES Corp (AES): 0.82339%
Tue, Aug. 9, 7:28 AM
- Coach (NYSE:COH) reports comparable store sales in North America increased 2% in FQ4. E-commerce contributed a percentage point of the growth during the quarter.
- International Coach brand sales were up 15% to $450M. Strong results were seen across both Europe and Asia.
- The company's gross margin rate fell 120 bps to 67.0%.
- SG& expenses as a percentage of sales were up 130 bps to 57.7%.
- Operating margin rate +250 bps to 15.1%.
- Previously: Coach beats by $0.04, misses on revenue (Aug. 9)
- COH -3.02% premarket to $40.20.
Tue, Aug. 9, 6:46 AM
Mon, Aug. 8, 5:30 PM
- ACM, AER, AMAG, AMRC, AMSC, ARES, BDSI, BERY, BITA, BR, CECE, CHTR, CNK, COH, CORE, EGRX, ENZY, EVEP, EXC, GLPI, GWPH, HCP, HHS, HPT, HRI, HWCC, INCY, IONS, IPXL, JEC, LABL, LAMR, LGIH, LNCE, LNG, LRN, LXP, MCC, MPAA, MWW, NCLH, NCT, NRG, NXST, NYLD, OCUL, PDCE, PMC, PPL, RDNT, RRGB, RSTI, SATS, SNI, SSH, STE, TDG, TESO, TGH, TLP, TRCO, UNVR, VRTU, VRX, W, WAC, WPRT, WWAV, ZBRA
Fri, Aug. 5, 9:40 AM
- Telsey Advisory Group shifts to an Outperform rating on Coach (COH +1.3%) after having the retailer set at Market Perform.
- The investment firm has a brighter short-term outlook for Coach with product and store initiatives looking promising.
- Shares of Coach are still down 3% for the week after a weak earnings report from Kate Spade influenced sentiment.
Wed, Aug. 3, 9:47 AM
- Kate Spade's (KATE -19.2%) weak results posted earlier this morning have created some broad anxiety across the spectrum of retailers that sell handbags luxury apparel, and accessories.
- The report from Kate Spade threw a bright spotlight on the uphill battle the sector faces in replacing sales from the reduced level of tourists pouring into the U.S.
- Coach (COH -1%), Vera Bradley (VRA -2.5%), Michael Kors (KORS -4%), Movado (MOV -0.3%), and Fossil (FOSL -2.9%) are all notably lower.
- Previously: Weak tourism cuts into results at Kate Spade (Aug. 3)
Wed, Aug. 3, 9:15 AM
- Gainers: SZMK +45%. KOOL +43%. INVT +26%. GNW +23%. ZAGG +14%. OCLR +12%. FIT +9%. BOFI +8%. ING +8%. TRXC +8%. ETP +7%. FCAU +6%. ETSY +6%. ZTS +6%.
- Losers: RUBI -29%. DRWI -20%. CRAY -20%. VGZ -19%. KATE -18%. CYH -17%. CROX -17%. ELGX -11%. FTAI -9%. QRVO -8%. SHIP -6%. COH -6%. RGC -6%. HBI -6%. KORS -6%. INO -5%.
Tue, Aug. 2, 3:11 PM
- UBS says the sale-leaseback of Coach's (COH -4%) Hudson Yards HQ will add $0.03 to FY17 EPS and $0.18 to FY18 EPS, with an increased level of buybacks and debt repayment in play.
- The investment firm sees Coach beating the consensus EPS estimate by a penny next week when the company reports FQ4 earnings.
- Looking ahead, UBS predicts Coach will gain market share and achieve a "strong" full price selling rate.
- "We saw significant levels of KORS/KATE during our recent TJX/ROST store tours…but no Coach," tips analyst Michael Binetti who ranks #566 out of 4,083 analysts on TipRanks.
- UBS keeps a Buy rating and $48 price target on Coach.
- Previously: Coach sells headquarters for $707M, logs $30M gain (Aug. 1)
Tue, Aug. 2, 10:04 AM
- July monthly performance was: +2.99%
- 52-week performance vs. the S&P 500 is: +7%
- $0.24 in dividends were paid in July
- Top 10 Holdings as of 6/30/2016: ONEOK Inc (OKE): 2.68634%, Mattel Inc (MAT): 1.37579%, CenterPoint Energy Inc (CNP): 1.3705%, Frontier Communications Corp Class B (FTR): 1.18302%, Coach Inc (COH): 1.12088%, CMS Energy Corp (CMS): 0.94653%, SCANA Corp (SCG): 0.91588%, Macquarie Infrastructure Corp (MIC): 0.89711%, Helmerich & Payne Inc (HP): 0.8648%, Digital Realty Trust Inc (DLR): 0.85433%
Mon, Aug. 1, 7:10 PM
- Coach (COH +0.8%) says it's performed a sale-leaseback of its New York City headquarters.
- The company got $707M in a purchase price (from an unknown buyer) before transaction costs of $26M for selling its 10 Hudson Yards property. That results in a gain of about $30M that the company will amortize over 20 years, coinciding with the company's long-term lease of the space.
- It will be the largest tenant in the new building and bring its Coach and Stuart Weitzman brands together in one area.
- Shares are flat in after-hours trading.
Wed, Jul. 27, 9:04 AM
- Shares of Coach (NYSE:COH) are on watch after Credit Suisse upgrades the high-end fashion house to Outperform from Neutral.
- "We believe stabilization in Coach's core business combined with a possible acquisition narrative could help drive significant, sustained earnings power long-term," reads the analyst note.
- CS assigns a price target of $47 to Coach.
- COH +1.14% premarket to $43.62.
Mon, Jul. 18, 7:17 AM
- Baird upgrades Coach (NYSE:COH) to an Outperform rating from Neutral after taking in positive results from a handbag survey.
- Analyst Mark Altschwager sees sales trends improving for Coach, including in the outlet channel.
- The investment firm lifts its price target to $50 from $45.
- COH +0.95% premarket to $42.70.
Thu, Jul. 14, 7:31 AM
- Coach (NYSE:COH) appoints Wendy Kahn to be the chief executive and brand officer of Stuart Weitzman.
- Kahn, currently CEO of Valentino USA, takes over the position on September 13. The exec will succeed Wayne Kulkin who will become a consultant to Coach.
- Coach acquired womens footwear maker Stuart Weitzman for $574M in 2015.
Tue, Jul. 5, 2:43 PM
- Full-price sales of luxury items have dropped sharply since the Brexit vote came in. Data-tracking firm Edited reports global luxury sell outs decreased 60% in the two weeks after the Brexit referendum, compared to the two-week period prior to the vote.
- The sector was already having a challenging year due a drop in Chinese tourism before the shock U.K. result.
- Luxury retailers: Gucci (OTC:PPRUF, OTCPK:PPRUY), Louis Vuitton (OTCPK:LVMUY), Coach (NYSE:COH), Ralph Lauren (NYSE:RL), Michael Kors (NYSE:KORS), Burberry (OTCPK:BURBY), Tiffany (NYSE:TIF), LVMH (OTCPK:LVMHF, OTCPK:LVMUY), Richemont (OTCPK:CFRUY, OTCPK:CFRHF), Remy Cointreau (OTCPK:REMYF, OTCPK:REMYY).