The 10-second takeaway
For the quarter ended June 30 (Q4), Coach missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Margins improved across the board.
Coach reported revenue of $1.16 billion. The 22 analysts polled by S&P Capital IQ anticipated a top line of $1.20 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $1.03 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.86. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.85 per share. GAAP EPS of $0.86 for Q4 were 26% higher than the prior-year quarter's $0.68 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 72.6%, 80 basis points better than the prior-year quarter. Operating margin was 30.4%, 10 basis points better than the prior-year quarter. Net margin was 21.8%, 220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.19 billion. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $5.41 billion. The average EPS estimate is $4.04.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,411 members out of 2,582 rating the stock outperform, and 171 members rating it underperform. Among 733 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 699 give Coach a green thumbs-up, and 34 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coach is outperform, with an average price target of $79.45.
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